Hitting home

23 November 2007 By Edward Hadas Follow @edwardhadas

The value of new mortgage approvals in October was 27% lower than the monthly average for the previous six months. It s not just a fallout from Northern Rock. Rather, it looks like the credit crunch is hitting home, literally. Rate cuts might not be enough to reverse this trend.

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In October, a total of £6.8bn of mortgages on newly purchased houses were approved in the UK. That was down from £8.3bn in September and £8.7bn in August. It was also 27% less than the monthly average for the previous six months.

Remortgage approvals in October totalled £7.2bn, down from £8.9bn and £8.4bn in the prior two months and 19% less than the monthly average for the previous six months.

Total secured lending, including £1.1bn of nonmortgage loans, was 23% below the sixmonth average.

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