Homeowner Loans Decline Despite Fall in Property Prices

A Council of Mortgage Lenders (CML) report has revealed that mortgage lending has fallen for the second month in a row. In response to the fall, average house prices have decreased for the third month in a row and the BoE base rate has remained stable at its historic low of half a percent, although these have seemingly done little to stir the market.

Although August typically experiences a softening of the market anyway, there is still cause for concern according to Brian Murphy of mortgage broker the Mortgage Advice Bureau “Mortgage activity almost always falls August on July due to the summer holidays, but the decline this year is certainly larger than we would expect on seasonal factors alone”. Many industry commentators have suggested that consumers are now prioritising debt repayment over extending their borrowing in uncertain economic conditions.

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