Mortgage approvals down but not out
Lending to individuals is, overall, below the six-month average, according to the latest statistics.
The Bank of England has today (June 2nd) announced a figure of £7.3 billion for the increase in total net spending to individuals in April, which is less than the increase in March.
Tougher lending criteria for first-time buyers seems to be borne out by the figures which show a reduction in the number of loans approved for house purchase in April.
Simon Rubinsohn, chief economist at the Royal College of Chartered Surveyors (RICS) said: "Lenders are continuing to tighten up on the conditions accompanying new loans making it hard for first-time buyers to take advantage of the modest fall in house prices seen over the past few months."
There was a 2.5 per cent drop in house prices in May according to the latest Nationwide house price index.
Commenting on the index, Louise Cuming, head of mortgages at moneysupermarket.com has said that first-time buyers who previously could not afford to get on the housing ladder may now be able to "re-enter" the market.
Mortgages News posted on 02/06/2008 15:42:14
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