New mortgage approvals fall to 17 month low

By Lauren Burns

The tightening of mortgage lending criteria is thought to be behind the October slump in new property loan approvals, which fell to their lowest in 17 months.

The Mortgage Market Review was introduced in April of this year and applied tougher affordability tests on mortgage applicants, looking at how their income might change over the early years of the mortgage term, and how they might cope with increases to interest rates. Some mortgage applicants reported being asked about their plans on having children, with others quizzed about their likelihood of getting a promotion.

In October there were 59,426 approvals of mortgage applications made in Northern Ireland and the rest of the UK, the lowest since June of last year. The total was also down 22 per cent on January of this year, with many economists saying it is yet another indicator of the property market cooling down.

If you are buying a house in Northern Ireland, or selling or remortgaging your existing property, contact one of the conveyancing solicitors at Wilson Nesbitt for legal information or advice by calling 0800 840 9290.

To read more about buying and selling property in Northern Ireland click here.