Home loan demand in decline
Mainstream credit acquisition for home loans and high street mortgages, have reduced substantially over the last few months, suggests data from a new report.
According to studies by the BBA, the accumulative total for all new home loan applications was down by almost 50% in the month of October, which totals less than £290 million.
One analyst suggested that the data is clear proof of a national slowdown in the mortgage market and could possibly indicate a decline in secured lending as a whole. This statement is further supported by the fact that the total of newly completed unsecured credit products had almost doubled in volume in the same month, faired against figures from the month previous.
It is suspected that changing economic conditions are causing many consumers to approach their personal finances, and indeed borrowing habits with a heightened sense of caution. It is also thought that a recent spate of negative media coverage on the performance of certain home loan providers may also be to blame.
In related news, a separate study has revealed that the average homeowner is balancing secured credit related commitments, which run in excess of £45,000.
