Gloom deepens as lending slumps
Mortgage lending slumped to a new low last month, raising fears that the slowdown in the housing market could be sharper than expected. The number of home loans, seen as a key barometer of future conditions in the housing market, fell to a record low of just 58,000 in April, down from 64,000 in March and 113,000 in April last year. This is the lowest figure since records began in 1993. The dire state of the mortgage market was highlighted further by Bradford & Bingley, Britain’s biggest buy-to-let lender, which reported a sharp rise in the number of borrowers in arrears. The bank, which issued a profit warning after raising emergency funding by selling part of its business, said that the number of borrowers who had missed three or more monthly payments jumped by 36 per cent between the end of December and the end of April. Bradford & Bingley’s travails will be a further blow to landlords. All mortgage rates have spiralled recently as lenders strive to protect their income during the credit crunch.
Source : John Watson, 03 Jun 2008