The British Bankers Association (BBA) has taken a positive stance on UK mortgages despite the apparent doom and gloom…

Published 28th May 2008

Commenting on the Association's latest mortgage figures, BBA Statistics Director David Dooks emphasized that contrary to some reports, the mainstream mortgage market 'had not ground to a halt’.

Mr Dooks' comments came as new figures revealed that the number of mortgages approved for house purchase was the second weakest on record in April. Approvals for home loans increased slightly to 38,704 last month from March's record low of 35,546, but that was is almost 40 percent lower than at the same time last year and well below the average of the past six months.

Booming remortgage market

The BBA figures showed approvals for equity withdrawal and other purposes also remained weak at 33,720, down 26 percent on a year ago. Re-mortgaging activity rose, however, and was more than 20 percent up on a year ago as homeowners shopped around for lower rates.

Mr Dooks further noted: "Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year."

"In contrast, there is an active remortgaging market as people switch lenders to obtain better deals. With some £18bn of new lending and nearly 150,000 loans approved in April, it is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt."

Source: ' themovechannel '

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