New Mortgages Hit a New Low
Wednesday 6th June 2007 Bank of England figures out this month show that new mortgage approvals have fallen to a 12-month low. April is the third month in a row that new mortgage approvals have fallen with figures totalling 107,000 in April, down from 111,000 in March.
This is an indication that mortgage demand is falling and is thought to be as a result of interest rate rises. In the past few years the low interest rates have encourages house buying and it is estimated that Britons have accumulated £1.5 trillion of debt.
Interest rates have risen four times however since August of last year and a further rate rise is expected by August 2007. Some forecasters are estimating that interest rate could hit 6% by the end of the year.
Rate rising are also impacting borrowing through other means such as loans and credit cards with the figures showing that the past months borrowing is the lowest ever since March 1997.
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