Banks across the UK are at an all time low on accepting mortgages. Records began in 1997 and in June 2008, there was the lowest ever recorded figure of 22,369 accepted mortgages. July was not much better with only 22,448 loans granted. Both these figures are approximately two thirds lower than a year previous.

It may seem the banks are scared to lend new property buyers money but the re-mortgaging figures are also down. There doesn’t appear to be any reprieve imminent as the UK economy is spiralling. The only plus side to all the problems is that house prices are plummeting. This should eventually help the situation as the lending amount required by the home purchaser will be lower meaning less financial risk to the banks.

To help ease economic problems, many are predicting a cut in Bank of England rates before the end of the year. This may also help things, but everything is all “ifs” at the moment. Until something is done, we all sit here in limbo watching the economy fall down around us.