Mortgage lending continued to fall in October, two major valuation firms have said.
The number of valuations fell 16% in October compared with September, said Connells Survey and Valuation.
The fall was largely due to a 23% decline in first-time buyers, whilst buy-to-let activity also fell, by 14%.
However, remortgage valuations accounted for 17% of activity and was up 78% on October last year.
Year on year, there was a 29% fall in valuations for first-time buyers.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Thousands of home owners, concerned over the direction of house prices, are delaying purchases. Instead, many are getting their finances in order for a longer stay.
“With cheaper fixed rate deals on the market and concerns over a potential interest rate hike, those who can afford to are remortgaging to avoid a future jump in monthly mortgage repayments.”
Meanwhile, e.surv reported that mortgage approvals for house purchase were down 2% in October, with LTV ratios falling as lending criteria tightened.
e.surv estimates the number of mortgages approved for house purchase was 46,507, down 18% on a year ago. It says the average LTV was 56.8%. The firm also said there was a major difference in the performance of the market at the top and bottom ends: lower value homes had 8.%% fewer mortgage approvals than in September, while mortgage volumes for homes worth over £500,000 rose 3%.
However, according to a new report by Rightmove, first-time buyers are seriously considering re-entering the market. See next story
Lending tumbles as first-time buyer numbers dive
08 November 2010
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