September 28, 2007

Drop in mortgage approvals

The has been a marked decrease in the amount of mortgages being approved for the month of August 2007, the drop was around 14.2% which in fact is the lowest approval rate since 2000. This could be a sign that the banks and building societies are getting stricter in the criteria that they are using and something to do with the interest rates being high as well.

No matter where you turn there are messages of doom coming out predicting the house market crash similar to the one in the late eighties which see the end of the last property boom. Yet the market today is different, there is more work, better pay and a strong economy, so nothing can go wrong then, can it?

Source [Finance Locator]