Mortgage Lending Continues To Plummet

The British Bankers Association (BBA) has revealed only 29,991 home loans were approved during November, a 20 month market low. The housing market shows little signs of recovery with mortgage approvals remaining low due to strict lending criteria.

The BBA’s figures also revealed overdraft and credit card repayments matched the amount of credit and overdraft borrowing, indicating that households remain nervous about overstretching themselves whilst the economic outlook remains uncertain.

Chief UK and European Economist at financial analyst organization HIS Global Insight said, “Demand for unsecured lending has been weak some time now. This is symptomatic of people being very cautious about household finances and working within their budget”

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