Octane Capital Reports 4.6% Decrease in Mortgage Approvals in Q1

Octane Capital Reports 4.6% Decrease in Mortgage Approvals in Q1

Mortgage approvals in the United Kingdom have seen a 4.6% decrease in the first quarter of 2020, according to a report from Octane Capital. This is the first time in four years that mortgage approvals have decreased in the first quarter.

The report from Octane Capital shows that the number of mortgages approved in the first quarter of 2020 was down 4.6% compared to the same period in 2019. This is the first time since 2016 that mortgage approvals have decreased in the first quarter.

The decrease in mortgage approvals is largely attributed to the coronavirus pandemic, which has caused economic uncertainty and disruption to the housing market. The Bank of England has cut interest rates to a historic low of 0.1% in an effort to stimulate the economy, but this has had a limited impact on mortgage approvals.

The decrease in mortgage approvals is likely to have a negative impact on the housing market, as fewer people will be able to purchase homes. This could lead to a decrease in house prices, as fewer people are able to buy homes.

The decrease in mortgage approvals is also likely to have a negative impact on the economy, as fewer people will be able to purchase homes and take out mortgages. This could lead to a decrease in consumer spending, as people are less likely to spend money on big-ticket items such as cars and furniture if they are unable to secure a mortgage.

It is unclear how long the decrease in mortgage approvals will last, as it is difficult to predict how the coronavirus pandemic will affect the economy and housing market in the long-term. However, it is likely that mortgage approvals will remain low for some time, as economic uncertainty persists and people remain cautious about taking out mortgages.

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