Mortgage approval figures indicate market not hit by interest rate rises
Recent figures that have been released in relation to mortgage loan approval rates in the UK have indicated that there has been no adverse effect on the property buying market as a result of the recent interest rate hike of a quarter of a percent. Figures were released by the British Banker's Association, and seemed to suggest that despite the fact that in August interest rates rose by a quarter of a percent, there had been no dip in the number of mortgage applications and loan being approved by major lenders.
In fact, according to the figures that were released by the British Banker's Association, the number of mortgage loan application approvals for October of 2006 was higher than approvals in October 2005, with 74,997 loans being approved in October of this year compared to 72,328 in October of last year. This seems to indicate that even though interest rates are higher than they have been in a few years, consumers in the UK are still fighting to get on the property ladder.
In addition to the rise in interest rates, which came as no big surprise to many people, those purchasing a property also have to face the hugely inflated property prices in the UK, with property values rocketing over recent years. For property purchasers, and more specifically for first time buyers who do not have an existing property to sell and make profit from, this means even more in the way of financial difficulties, as it means that they not only have to apply for a larger mortgage but also have to pay a higher rate of interest on the money they borrow.
However, despite these combined factors, it seems that there is no stopping those determined to get their foot on the property ladder, and many of the well known banks and lenders are still enjoying a roaring trade in terms of mortgage applications and approvals.
5th December 2006