BSA reports decline in mortgage approvals
The amount of money being given to people in order to buy a house has declined, according to new statistics.
Figures from the Building Societies Association (BSA) have shown that approvals totalled £3.9 billion in April 2007, compared to £4.2 billion the year before.
While gross advances recorded for April were the highest the month has seen for three years, net advances were down on the previous year, commented Adrian Coles, director-general of the BSA.
He said: "The lending figures suggest that the effects of the four rate rises since August 2006 are beginning to show.
"[But] we expect lending to remain robust throughout the remainder of the year, although another interest rate rise could dampen growth further."
An increase in the interest rate this month to 5.5 per cent followed the surprise rise to 5.25 in January 2007.
This may see people fall into debt and possibly consider taking out a loan to ease their difficulties.
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