Home loan approvals fall as costs rise by Finance News Bulletin

Published: 15/12/07

High prices and rising interest rates have helped to slow the homebuying hurry as mortgage approvals for home purchases in March tumbled to their lowest height for almost a yearThe latest Bank of England figures, free today, showed that 111,000 mortgages were in use out by homebuyers in March - 6,000 fewer than the previous month and more than 10,000 below the six-month averageHowever, despite the month footage the the lowest figure of mortgage approvals for homebuying since April 2006, Briton's still borrowed more than £1bn per daylight hours against their homeThe store of England said the total value of mortgages taken out in demonstration was £34

4bn - with the amount of borrowing secured against homes increasing £99bn year-on-year The 12-month growth rate for mortgage lending remained unaffected at 115%

Remortgages fell significantly in March to 100,000, after leaping to 114,000 the previous month following January's shock interest rate hikeThe total figure of mortgages approved in March fell to 284,000 from 307,000 and analysts suggested than affordability problems were beginning to sink your teeth into homebuyersHoward Archer, chief UK economist at worldwide Insight, said: 'Housing market activity is now slowly coming off the boil as higher interest tax and elevated house prices increasingly squeeze new buyers out of the market and make it more difficult for existing house owners to trade up'The store of England said consumer praise rose by £900m in March, less than the £1bn six-month standard although credit card borrowing picked up to increase by £200m

We don't need the Housing Market to 'approach off the boil', it needs to be plunged into an icy bath to bring prices from it's current outrageous levelsall right it will be sore for some people (namely the greedy and foolishly overstretched) but it's for the greater goodAnything that stops the constant rise in house prices is good; I have two children trying to put aside for a house I'm surprised that our Gordon hasn't had a better slice of the action through a new duty on house profit; Ouch

Past knowledge shows that the so-called 'independent' MPC has been all too quick to seize on the smallest amount economic indicator to begin undecided over the issue of raising interest rates

It should also come as no surprise that the reluctance of the MPC to 'sink your teeth into the bullet' has allowed Gordon Brown to accept a sequence of undeserved accolades, mostly from his evenly deluded disciples

Anyone who still thinks that this is just a mere coincidence should really look for medical adviceThe people who marketplace this type of short-sighted economic view are politicians and their chosen cronies Again, based on past performance, opinions and figures emanating from such sources deserve to be treated with the greatest contemptSelect a loan term 12 months (1 day 24 months (2 years) 36 months (3 years) 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please select a kind of insurance Life insurance Home and contents Car stop working services Health - checkup Health - dental Travel Pet - dog favorite - cat GOThinking about investing in property

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