The Bank of England (BoE) have release figures indicating that the recent mortgage restrictions are now truly hindering the rate of mortgage approvals.
So far this year May saw the lowest rate of mortgage approvals since June 2013. Approvals dropped from 62,806 in April to 61,707 in May, putting it lower than June last year, according to figures reported from the BoE.
Rising house prices of up to 10 per cent have turned the housing market into the biggest threat to the economy of the UK, according to the BoE and many experts, so the Financial Planning Committee took action last week and announced some restrictions that will curb lending and hopefully stunt the demand for homes, while more are being built.
However, there are fears that these regulations will restrict lending too much and stop the credit worthy from acquiring mortgages.
Nationwide and Halifax have recently restricted the amount of Help to Buy schemes they will be offering by stopping brokers advertising them, and the amount that they will offer in store.
Responsible lending should make the overall housing market more stable and reliable, although each individual seeking a mortgage may suffer for it.
