Isn't it amazing, the capacity for the media to add 2 and 2 and get 5.
The BBC reports today that:
"The number of new mortgages approved for house purchases has fallen to its lowest level since current records started, Bank of England figures show the credit crunch has reduced the availability of mortgages, especially to those house hunters who are unable to offer a large deposit".
Err excuse me but it ain't necessarily so. The previous free for all in home loans fuelled by ever rising house values had turned the UK's homeowners in to amateur property speculators, now they are faced with falling values so, sensibly, they do not want to borrow to fund a loss.
The result is that only those who need, rather than want, to move are moving.
Subsequently the number of loans approved has dropped, well they would wouldn't they.
What is not reported is the number of mortgages applied for that were rejected, as this is the only figure that would throw light on the true situation, but hey that wouldn't make such a good headline would it ?
can't really see the BBC running " UK Homeowners Behaving Sensibly " as a headline