Home loan approvals have hit a record low as the credit crisis continues to impact on the housing market. Approval levels in March were down by nearly 50 per cent on the previous year, with just 35,417 home loans approved. It is the lowest number since 1997, whilst overall mortgage approvals including refinance deals and equity withdrawal are at their lowest since 2000.
Such is the trouble faced by banks, the Bank of England announced proposals worth £50 billion in a bid to ease the caution banks are displaying at present. Experts have commented that the true cost of the plans could be nearer to £100 billion, however.
Since the sub-prime crisis, not only have banks rejected more loan applications, but they have also increased interest rates and withdrawn some of the most attractive offers.
Home Loan Approvals at Lowest Level in Over a Decade
Thu, 24 Apr 2008
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