Bank of England loan information figures reveal fall in homebuyer loans
The Bank of England has released new statistics concerning mortgages and consumer leading.
The latest loan information figures from the Bank of England have found that the number of loans made to homebuyers fell in December, the first drop in more than a year, the Times reports.It has been revealed that mortgage approval rates declined in the last month of the year, though the fall came against the expectations of most housing market experts.
Also, the Bank of England's report showed an unexpected increase in unsecured consumer lending for the first time in half a year.
In fact, the net increase in mortgage lending also slowed to £1.165 billion from £1.551 billion.
Philip Shaw, a UK-based economist at Investec Securities, explained that the end of the 12-month stamp duty holiday on house buys in excess of £125,000 could have caused the unexpected dip.
However, he told the newspaper: "The figures have been steadily inching up for months. One month of modest falls needn't mean an end to the trend."
According to a study conducted by the Woolwich, homeowners in England and Wales saw a 20 per cent fall in the proportion of their take-home pay spent on monthly mortgage repayments last year.
The report revealed that homeowners were spending on average £196 of every £1,000 of their take home pay each month on their mortgages.
Further to this, the average monthly mortgage payment for homeowners is £497, while the figure stood at £607 in December 2008.
Posted by Tobias Bluth
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