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Mortgage approvals drop compared to same time last year.

As we approach the end of the year not such a cheery note as far as mortgage approvals are concerned, High street bank mortgage approvals were down 20 per cent in November compared with the year before, new figures from the British Bankers’ Association (BBA) research have shown.

Along with the mortage figures also house sales for the month of November have been reported by the BBA as being 20% fewer than this time last year, this could be attributed to the more stringent rules on mortgage lenders by the FCA following the Mortgage Market Review which came into effect in April this year.

This could well be a temporary blip, the Chancellor’s autumn statement stamp duty announcement could well help attract a new wave of buyers to the housing market and should instil confidence in both, buyers and lenders.

As reported in the investment section ofYourmoney.com BBA chief economist Richard Woolhouse said: “Today’s figures show quite a sharp chill to the housing market in recent months – with house purchase approvals during November 20 per cent lower than a year before.

It will be very interesting how both the stricter mortgage rules and the new stamp duty rates affect the housing market as we go into 2015.

Allen Walkey

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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