Mortgage Approvals Halve – Get A Home Loan
With widespread concern over the stability of the housing market climbing in recent months, new statistics have shown that approval rates for qualify for a mortgage fell by 50 percent in March 2008.
According to the British Bankers Association, the numbers for all major high street banks showed a slowdown in the availability of mortgages, personal loans with also reported as weakening. The total figures for mortgages among all major banks amounted to 5.1 billion pounds, compared with 5.5 billion pounds in February. This equates to only 35,417 new outstanding qualify for a mortgage during the month, a decrease of 18 percent from the previous month. Consumer credit approvals also dropped by 200 million pounds to 500 million pounds.
The decline in mortgage availability has been experienced across all forms of applications, with approvals for the purchase of permanent housing at its lowest level since 1997. In addition, almost 50 per cent of the applications received came from Owners wanting to enter into mortgage refinancing agreements, even though the number of these types of loans have been successful only in previous months.
During the month period, worth £ 2.7 billion new personal loans were approved, a stable figure compared to the following February and up to 100 million pounds the previous year six months on average. The BBA reports that consumer spending showed signs of recovery in early 2008, with deposits currently online with long-term averages. In the last quarter of 2007, total deposits in the United Kingdom fell to less than one billion pounds, with this month’s figures showing a rise to three billion pounds, slightly above the trend trajectory.
BBA statistics director David Dooks said the most recent data: “The consequences of weak banking sector liquidity appear clearly in the March data; reduced product lines and tighter criteria leads to mortgage lending and qualify for a mortgage. Loans significantly less pressure on personal finances are also binding on demand, not only for mortgages, but also for personal loans and card loans. ”
Elsewhere, Simon Rubinsohn, spokesman for the Royal Institution of Chartered Surveyors, told the BBC: “The tightening of the credit crisis is still affecting the housing market. The last of England’s ‘swap’ deal with the banking sector is expected to help provide a bit more cash for lenders, but will not turn around the current difficult environment overnight. ”
The Bank of England recently announced a relaxation in the types of securities it will accept as collateral, in an effort to encourage borrowing among mortgage providers. The BBC reports that even if these measures are successful, it is unlikely that consumers will be able to obtain mortgages of 100 percent of the value of the property or more, as was the case the year last. He predicts that ten percent deposit on all mortgage applications is likely to become the norm for homeowners. For people struggling to save money for their deposit, a personal loan can be a help to help produce the funds needed for an application.
The BAA figures followed the announcement by the Bank of England’s Monetary Policy Committee earlier this month of its decision to lower the base rate of interest by a quarter of a percentage point to settle at one even five percent. It was the second reduced rate of the year so far….
Get the best mortgage rate – Online Store
Usually, shop for the best mortgage rate you visit several lenders. You set up an appointment and go to their respective offices. With this arrangement, what you need is a lot of time since you need to spend a considerable amount of talking to prospects and evaluate whether they can give you what you need or not. Overall, it is a laborious and physically stressful process.
But did you know that you can actually shop for the lowest rate online mortgage? Yes you can. And if you use this option, you do not only save time, but you also get to expand your horizon. The latter gives you the unique opportunity to get the mortgage rate that is ideal for your specific situation.
Refine your search
When searching for the best mortgage rate, you must decide if you want to get lenders that exist only online or those who have a physical presence. Once you are clear on this point, you can then refine your search.
Note that when choosing mortgage providers online, you will be dealing with paper works and online payment. So, basically, you have to do everything yourself with less help. On the other hand, if you have chosen those lenders who have both an online and physical presence, then you have the chance to meet your lender face-to-face. Whichever “type” lender you choose, make sure you learn as much as you can about them. Check their reputation and how borrowers perceive their services. After all, a low mortgage rate could not be put to any good use if your lender is not reliable.
Discover two different places
Perhaps, the best thing about shopping for online mortgage providers is that geography rarely limits you. For example, if your area is plagued by a housing crisis, then looking for a lender outside such a neighborhood would give you a better chance of falling on the lender who can give you the best mortgage rate. Therefore, doing this extra work of expanding you are looking at different states and you might be surprised by the options that are presented to you.
Protect your personal information
Finally, the internet is generating a number of badly-bred entities that would attack unsuspecting people like you. Therefore, you must be doubly careful with the information you disclose on the internet. In your effort to get the best mortgage rate online, you could endanger your personal information and credit records as well. So before putting in anything, make sure first and foremost that the site is secure….