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FRIDAY 25TH FEBUARY 2005
 43% DROP IN UK MORTGAGE APPROVALS

Loan approvals for home purchases fell by 43 per cent this January compared with a year earlier, says the British Bankers' Association... down poundIn January 2004, the approvals figure for house purchase was 54,443 loans; this January it fell to 31,285. There was also a decline in the figure from December 2004 - usually the quietest month for mortgage approvals - with the percentage decrease between then and January standing at 22 per cent.

This marks the eighth consecutive monthly decline in approvals, with the highest figure being in March 2004 when the number of approvals was 97,852 - 68 per cent higher than last month.

David Dooks, BBA director of statistics, said: "Mortgage lending resumed its relatively subdued trend in January and this looks set to continue in the near term, as approvals for house purchase and equity withdrawal were very weak, even for a January."

A Rise in Re-Mortgages

He continued: "The only area of demand holding up is re-mortgaging where borrowers continued to find good deals to reduce their borrowing costs."

The number of re-mortgaging loans approved in January 2005 was 55,404, a slight decline of eight per cent on the previous January where the total was 60,021, and an increase of one per cent since December's figure of 55,007.

The average value of house purchase loans was £116,200 in January 2005 compared with £100,800 in the same month last year and £118,100 in December.


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