The numbers show that the value of new mortgage lending is declining by a quarter a year

Bank of England figures showed that the total value of new mortgage loan obligations fell by about a third (33.5%) in the last quarter of 2022, compared to the previous three months.

The amount of lending of £58.4bn agreed to be made in the coming months was also about a quarter (24.5%) less than the previous year, according to Statistics Mortgage Lenders and Administrators.

The bank said that if the onset of the Covid-19 pandemic and the period immediately after it were excluded, this would be the lowest total seen since the first quarter of 2015.

The share of mortgages increased in the fourth quarter of 2022 as loan-to-value (LTV) ratios above 75% fell 1.4 percentage points sequentially, to 37.0%, but remained slightly higher than a year earlier.



The number of people who are in arrears on their mortgage is starting to rise

Sarah Coles, Hargreaves Lansdowne

Outstanding balances with arrears increased for the first time since the first quarter of 2021 to £13.6 billion.

Increases in the Bank of England’s base rate have generally pushed up borrowing costs.

Mortgage rates also jumped after the September mini budget.

“Mortgage approvals fell like a stone at the end of 2022, after a micro-budget drove up prices and sent potential buyers home,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.

She added, “The arrears will also be one to watch. We are still close to historic lows, but the number of people who are behind on their mortgage payments is starting to rise.”

DISCLAIMER:- Denial of responsibility! olorinews.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email at loginhelponline@gmail.com The content will be deleted within 24 hours.

Read original article here

Leave a Comment