Mortgage lending hits record low
The number of loans being issued to homebuyers in search of property for sale in London has reached rock-bottom levels, official figures have revealed.
According to the Bank of England's latest report, just 58,000 loans for new home purchases were approved in April - the lowest level recorded since records began in 1999.
That number significantly undercut market expectations of 65,000 and marks the third consecutive month in a row that mortgage lending has reached an all-time low.
And with the property downturn steadily eroding asking prices for London property, gross mortgage lending figures fared no better with just £6.4 billion in loans being issued - down £300 million on March.
Overall lending also faltered in the wider economy, with the six-month average of £8.7 billion being slashed to just £7.3 billion in April.
And yet despite the worsening situation, Jeff Knight of GMAC-RFC predicted that the base rate of borrowing will remain unchanged when the Monetary Policy Committee meets tomorrow (June 5th).
Speaking to the FT, he added: "There seems to be no doubt now that the market has bottomed out, but how long it will bottom out for is what everyone is wondering."
Published 4th June, 2008
© 2008 Estates IT Limited
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The number of loans being issued to homebuyers in search of property for sale in London has reached rock-bottom levels, official figures have revealed.