UK Finance reported that 36115 mortgages were approved, making it the lowest figures since April 2013.
The number of remortgage loans getting the go-ahead stood at 28460, the lowest it’s been in four months.
Howard Archer, Chief Economic Adviser at EY ITEM Club, said that housing market activity ended 2017 “very much on the back foot”.
He said he expects house prices to rise by a “modest” 2% in 2018.
Mr Archer said: “The fundamentals for house buyers are likely to remain challenging.”
“The squeeze on consumers’ purchasing power remains appreciable going into 2018, and it is likely to only gradually ease as the year progresses.”
“Additionally, housing market activity is likely to be hampered by fragile consumer confidence and limited willingness to engage in major transactions.”
During December, UK banks approved £7.02 billion in mortgage lending – the lowest amount since September 2016.
The figures also show annual growth in consumer credit slowed to 0.7% in December from 0.8% the previous two months, with credit card borrowing showing annual growth of 5.3%.
Mr Archer said: “The Bank of England will be pleased with the slowdown in consumer credit in December and will be looking for a continuation of this trend in 2018.”
Eric Leenders, managing director of personal finance at UK Finance, said: “December is traditionally a quieter month for mortgages.”
“Mortgage rates remain low, driven by a competitive market, so customers should shop around for the best deals.”
He said business lending was up year-on-year, “even though December saw the usual seasonal net repayment across all industries and sizes of borrower”.
Submitted Article
Headline
Short Headline
Standfirst
Published Article
HeadlineMortgage approvals at lowest level in five years
Short HeadlineMortgage levels are at a five year low
Standfirst
UK Finance reported that 36115 mortgages were approved, making it the lowest figures since April 2013.
The number of remortgage loans getting the go-ahead stood at 28460, the lowest it’s been in four months.
Howard Archer, Chief Economic Adviser at EY ITEM Club, said that housing market activity ended 2017 “very much on the back foot”.
He said he expects house prices to rise by a “modest” 2% in 2018.
Mr Archer said: “The fundamentals for house buyers are likely to remain challenging.”
“The squeeze on consumers’ purchasing power remains appreciable going into 2018, and it is likely to only gradually ease as the year progresses.”
“Additionally, housing market activity is likely to be hampered by fragile consumer confidence and limited willingness to engage in major transactions.”
During December, UK banks approved £7.02 billion in mortgage lending – the lowest amount since September 2016.
The figures also show annual growth in consumer credit slowed to 0.7% in December from 0.8% the previous two months, with credit card borrowing showing annual growth of 5.3%.
Mr Archer said: “The Bank of England will be pleased with the slowdown in consumer credit in December and will be looking for a continuation of this trend in 2018.”
Eric Leenders, managing director of personal finance at UK Finance, said: “December is traditionally a quieter month for mortgages.”
“Mortgage rates remain low, driven by a competitive market, so customers should shop around for the best deals.”
He said business lending was up year-on-year, “even though December saw the usual seasonal net repayment across all industries and sizes of borrower”.
Inside Success Union CIC claim to empower vulnerable young people, but allegations of underpayment and concerns over their fundraising practices are undermining their message.
