Mortgage lending on a downward slide
The newest figures from the Bank Of England (BOE) prove to be a bit of a shocker. Numbers show that the amount of mortgages given out to new buyers has fallen significantly, by as much as 20%.
The 102,000 mortgage applications that were approved amounted to 25,000 less than the numbers reported from September.
Ever since this summer there has been the signs of a slight downward turn in house buying and indeed property prices. In fact the Land Registry for England and Wales announced that there had been a significant drop in the inflation of property prices, from 9.4% in August to 8.7% in September.
Speculators have predicted that this squeeze on the property market would eventually occur after interest rate rises over the past year, borrowing costs increase and house prices have continued to escalate at a worrying rate.
The Council of Mortgage Lenders (CML) predict that it will be 2008 where we see changes happening the most. They forecast a dramatic slowing down of property prices from a 7% annual growth to just 1%. And even though the property market will continue it'll just be a lot slower, with house sales expected to drop by 15% - so be prepared for a slow sale if you are planning to move house.
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