Mortgage lending decline in October

october_lendingThe number of mortgages being taken out with UK banks fell slightly in October, according to the industry.

The (BBA) British Bankers Association said that loans approved in October stood at 42,808 which is a slight dip of 375 on Septembers figures.

The mortgage lending figures from BBA still indicate a large increase of 33% over the past 12 months.

This small monthly decline in mortgages may be the result of some cautious lending from mortgage lenders whom may be wary about extending mortgages to households of fragile finances, and against homes that look overvalued.

This decline could also be that a selection of homebuyers may put off taking out a mortgage in October until the government made clearer details of their mortgage guarantee scheme.

Reference BBC reports