The Bank of England recently released a report that showed a decrease in mortgage approvals and borrowing in April. This is the first time since the beginning of the year that the number of mortgage approvals has decreased. The report also showed that the amount of borrowing for mortgages was down by 4.7% compared to the previous month.
The decrease in mortgage approvals and borrowing can be attributed to the economic uncertainty caused by the coronavirus pandemic. With businesses closing and people losing their jobs, many potential buyers are unable to secure a mortgage. Additionally, lenders have become more cautious in approving mortgages due to the economic downturn.
The decrease in mortgage approvals and borrowing could have a significant impact on the housing market. With fewer people able to buy homes, it could lead to a decrease in house prices. This could have a ripple effect on the economy, as it could lead to a decrease in consumer spending and investment.
The Bank of England is taking steps to help mitigate the effects of the decrease in mortgage approvals and borrowing. They have introduced a number of measures, such as reducing interest rates and providing financial support for businesses. These measures are designed to help stimulate the economy and make it easier for people to get mortgages.
It is important to remember that the decrease in mortgage approvals and borrowing is only temporary. As the economy recovers, it is likely that mortgage approvals and borrowing will increase again. In the meantime, it is important for potential buyers to take advantage of the measures introduced by the Bank of England to help them secure a mortgage.