Mortgage approvals in the United Kingdom have seen a 4.6% decrease in the first quarter of 2020, according to a report by Octane Capital. This is the first decrease in mortgage approvals since the second quarter of 2019, when approvals fell by 2.2%.
The report 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 decrease since the second quarter of 2019, when approvals fell by 2.2%.
The decrease in mortgage approvals is largely due to the economic uncertainty caused by the coronavirus pandemic. The UK economy has been hit hard by the pandemic, with unemployment rising and consumer spending decreasing. This has caused lenders to be more cautious when it comes to approving mortgages, as they are uncertain about the future of the economy.
The decrease in mortgage approvals is also due to stricter lending criteria imposed by lenders. Many lenders have tightened their criteria in order to reduce the risk of defaulting on mortgages. This has made it more difficult for borrowers to qualify for mortgages, leading to fewer approvals.
The decrease in mortgage approvals is likely to continue in the coming months, as the economic uncertainty caused by the pandemic persists. However, it is important to note that this decrease is not necessarily a bad thing. Lenders are being more cautious when it comes to approving mortgages, which can help protect borrowers from taking on too much debt.
Overall, the report from Octane Capital shows that mortgage approvals have decreased in the first quarter of 2020. This decrease is largely due to the economic uncertainty caused by the coronavirus pandemic and stricter lending criteria imposed by lenders. While this decrease may be concerning for some, it is important to remember that lenders are being more cautious when it comes to approving mortgages, which can help protect borrowers from taking on too much debt.