Overall mortgage stock continues to climb and has achieved a 1.6% rise compared to last year despite demand slowing down.
The research stated that after recovering from a temporary bottleneck associated with the implementation of the Mortgage Market Review earlier this year, recent figures show that overall approval numbers have been slowing.
Compared to the same time a year earlier, house purchase approvals were down 20%, remortgaging fell 22% and equity withdrawal was down by 35%.
BBA’s Chief Economist, Richard Woolhouse said: “Today’s figures show quite a sharp chill to the housing market in recent months – with house purchase approvals during November 20% lower than a year before. It will be interesting to see what impact the stamp duty changes the Chancellor unveiled in his Autumn Statement will have early in the New Year. They could prove a modest stocking filler for homebuyers and estate agents.
It’s also striking to see that unsecured borrowing such as personal loans are growing at their fastest rate for six years. This suggests consumers may be feeling more confident which bodes well for a fruitful Christmas for retailers.”
