Bad credit mortgages hit mortgage approvals

The number of mortgage approvals to first time buyers and home mover was at a record low last month as the banks struggled in the wake of the bad credit mortgages fiasco. Most buyers seem to be holding of making that move due to uncertainty in interest rates.

Only 42,088 mortgages were approved for first time buyer and home movers by banks in December, lower than at any time since records began in September 1997, figures from the British Bankers’ Association (BBA) showed.

This news, will hopefully add to pressure for a base rate cut, comes as more high street banks move to increase rates on popular tracker mortgages — penalising borrowers hoping to benefit from future reductions.

Abbey have just increased their tracker mortgages no doubt most lenders are making increases now to hopefully make cuts after the Bank of England meet in February. Brittannia, Alliance & Leicester and Nationwide have also increased tracker rates.