Approved
mortgage rates through July slipped 11 per cent on the same period of 2004, falling to 181,933 over the month. The total value of
mortgage rates stood at £17.1 billion.
Gross lending mortgage rates dipped to £16.0 billion while seasonally adjusted net mortgage lending rose by £3.7 billion. The overall value of mortgage rates was seven per cent down on June, and the lowest figure since February.
"July's rise in net mortgage rates lending was the weakest since December 2001 but the weakness resulted largely from higher than usual levels of redemptions, particularly relating to maturing fixed rate loans," said David Dooks of the British Banking Association (BBA).
"Together with relatively slow approvals, it reiterates the subdued mortgage environment of late," he added. The widely expected August rate cut was also a partial cause as home owners waited for cheaper borrowing.
"The sharp drop in overall mortgage approvals does on the face of it look concerning," Gavin Redknap of Standard Chartered Bank told This is Money.
"Approved mortgage rates, a key lead indicator for house prices, have been showing signs of improvement for much of 2005. However, it's quite possible that home
buyers held back from purchasing in July due to the fact that they anticipated a rate cut in August."
