Mortgage approvals fall to three-year low

The number of new mortgages approved for house purchase fell to their lowest level in three years last November, according to new figures published by the Bank of England.

A total of 83,000 mortgages were given the go-ahead, compared to 89,000 in October and 100,000 in September.

However, the figures also revealed an increase in re-mortgaging activity, with 95,000 homeowners, a 7,000 increase from the previous month, choosing to re-finance their property in November.

And Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, claimed that the mortgage offerings from building societies had been less affected by the recent tightening in lending.

"The level of mortgage approvals granted by building societies has barely changed over the past few months. This in contrast to lending from banks and 'other specialist lenders'," he commented.

He added, "The divergence principally reflects the ability of building societies to draw heavily on savingsfrom depositors to finance lending activity."

Related Articles

Britons with mortgages should insureNorwich Union withdraw unemployment coverGrab cheap mortgage rates nowExclusive fixed rates from SkiptonCoventry reduces fixed rate mortgages