Mortgage lending to first-time homebuyers in the UK declined to a two-and-a-half year low in April, with only 35 percent of 40,000 mortgage applications having been approved due to higher down payment requirements.
According to the Council of Mortgage Lenders, the number of home loan applications fell almost a fifth in March, while overall market share dropped to its lowest level since September 2007.
Although total mortgage lending dipped nine percent in April, it rose 15 percent over the same month last year.
However, CML Chief Executive Michael Coogan warned that “there remain significant risks, in particular increased public sector unemployment and higher taxes."
Builder Bellway noted that concerns about next week’s Budget had already dented demand. "We’re waiting to see how things pan out and how Mr. Average’s confidence is affected," said John Watson, chief executive of Builder Bellway.