Figures from the Bank of England (BoE) reveal that the number of loans approved was reduced by 71 per cent year-on-year to the lowest level recorded, as lenders choose not to fund to buyers. The credit crunch has forced lenders to take stock of the money that they are lending and the new BoE figures are seen by many analysts as another blow for the economy.
Adrian Coles of the Building Societies Association told the BBC: "Activity in the housing market continues to be depressed and the approvals figures suggest this is likely to continue for some time. Recent falls in property values have been widely publicised, reducing potential buyers' confidence and keeping them out of the market."
The collapse by specialist lenders other than banks and building societies, such as those dealing with poor credit mortgages, is also illustrated by the BoE figures. In July 2007, such lenders gave out 32,000 mortgages for house purchase; in July 2008 they lent just 2,000. Meanwhile, mortgage lenders across the UK approved just 7,000 home loans, compared to 24,000 by the major banks.
The Bank also said that mortgage lending rose by 3.231 billion pounds in July, better than anticipated however only 33 per cent of the increase seen in July 2007.
However, in spite of the decline, building societies have seen that their inflow of cash from savers has maintained its climb, with savings accounts in building societies having a total of 1.435 billion pounds in July, compared to 723 million pounds this time last year.
Released 7 days ago, the latest results from Nationwide found that UK house prices saw an annual double-digit fall for the first time since 1990 - with prices 10.5 per cent lower in August than a year ago. The new BoE figures could increase the pressure on the Bank to chop interest rates in order to help the housing market and the wider economy. However, when the monetary policy committee meets this Thursday (September 4th), it will probably keep interest rates on hold at five per cent in the interim.
Howard Archer, an economist at Global Insight, told Reuters: "Although we are sure the BoE to cut interest rates before the end of the year, we believe it will not change before November when there is likely to be growing evidence that the deepening economic slowdown and more unemployment are diluting underlying inflationary pressures."
In August, the BoE decided to leave the base rate at five per cent for the fifth consecutive month, after a 0.25 per cent cut in April. As a result of this consumers' abilities to handle other spending costs - in areas such as personal loans, credit cards and transport costs - did not come under further pressure.
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As we watch the trials and tribulations of Senator Tom Delay, with his pleads of innocence and the Texas District Attorney claims of improprieties, we wonder, what on God's Earth is wrong with our government. Manipulating our laws for their own personal gain and personal notoriety. Blocking an advancing opponent from seeking re-election or advancing to higher office.
Unsure how you feel about all this non-event political games, but we ought to throw the whole lot of them out on their ears? This is no way to run the greatest civilization ever created in the History of our species. When the legal system is used for political attack or attacks are made against our legal system it is a travesty to all we hold dear.
When we character assassinate our leaders or when our leaders change our rules, then these politicians have turned their backs on all we are and all we have built in the great nation. Additionally they are spitting on the graves of our ancestors and throwing away the sacrifices given to the common good.
We do not need such scoundrels fighting over dribble in all their sound and fury, we do not need smirking politicians on our television sets holding press conferences, we do not need to witness their partners in crime, those law making lawyers who have hijacked our nations well designed checks and balances. What we need is to clean house. If these folks cannot get along and get it done who needs them. As my fellow taxpayers and citizens watch these on-going shenanigans, one has to wonder what would happen if these fine politicians were on the board of directors of any corporation. I know, they would be thrown out of the company and taken away in handcuffs and sued into oblivion.
It is almost time my fellow citizens to take a stand, as this repeating hypocrisy is getting so far out of control, it is time to take back our government. These so-called leaders are nothing more than a bunch for pre-juveniles fighting over plastic shovels in the sand box in the first grade. This is not about them this is about us. If they cannot do any better than this, we ought to kick their butts out on the street. It is not funny, these games they play. All this chaos and controversy is pathetic indeed, why again do we need them? They do nothing put up barriers in the way of our right to pursue happiness. Since they cannot get anything done, screw up everything they do, create bureaucracy and silly laws, which prevent our enjoyment of the freedoms we are guaranteed wouldn't we better off without them? It is time to downsize government, delete these morons from their power and strip them of their perceived elevated society status. They are not above the law, nor are they to use the law in correctly. I don't know about you, but it makes me sick. Are you satisfied with their performance?
Let me know when you have had enough, the clock is ticking and we as a nation have some decisions to make about the future of out country and the forward progression of the species or we are doomed to repeat. Would you please think on that tonight, let's start talking about what is going on here. We are the greatest nation in the World do we move forward or let these folks throw it away? Quite frankly the politicians performance is not good enough, not by a long shot.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance http://www.WorldThinkTank.net/wttbbs
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