Recent Updates

  • US: Employment Situation (May)
  • Lithuania: Foreign Reserves (May-Prelim), Macroeconomic Projections (Q2)
  • US: Establishment Survey Detail (May)
  • Canada: Labor Force Survey (May)
  • more updates...

Economy in Brief

UK Mortgage Approvals By Banks Continue To Fall
by Louise Curley June 24, 2008

The British Bankers Association (BBA) announced today that mortgage approvals for house purchases by banks in the United Kingdom continued to fall in May. At 4,289 million GBP (Great Britain Pounds) they are now 64% below the peak of 11,811 million GBP reached in November of 2006. Approvals for re-mortgaging, on the other hand, are rising. In May they were 9,165 million GBP, more than twice approvals for house purchases. In the past approvals for refinancing were generally lower than those for house purchases as can be seen in the first chart.

In addition to banks, building societies, non bank credit grantors and specialist mortgage lenders are in the business of providing loans for house purchase and re-mortgaging. The Bank of England publishes data on all the sources of mortgage finance, usually about three weeks after the BBA release. As banks are the major supplier of mortgage credit, there is a close correlation between the two series as can be seen in the second chart.

UNITED KINGDOM   May 08 Apr 08  Mar 08  Peak  % Chg from peak  2007 2006 2005
Mortgage Approvals for House Purchase 4289 5354 5806 11811* -63.69 105727 115475 97175
Mortgage Approvals for Refinancing 9165 9987 9632 11160# -17.88 103155 94351 85802
Mortgage Approvals for House Purchase -- 8268 8997 17933* -53.90 180494 192325 146750
Mortgage Approvals for Refinancing -- 14133 13627 15072# -6.23 150744 138590 128970
 * November, 2006
 # January, 2008
large image