Approved mortgage rate drops
28 August 2008
The amount of mortgages approved in the UK in July this year was down 69 per cent compared to a year ago, it has been reported.
Figures from the British Bankers Association and published on All Headline News said that last July, 64,184 mortgages were approved compared to 22,448 in the same month this year.
The value of approved mortgages stood at £10.3 billion last year but is now down to £3.2 billion, the figures indicate.
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In related news, Alliance & Leicester has announced it is to cut the rates on some of its home loans.
The mortgage bank said that the rate on two-year fixed loans of up to £250,000 will fall from 6.64 per cent to 6.19 as of Wednesday, with the rate on two-year loans between £250,000 and £1 million dropping from 6.14 per cent to 5.99.
In related news, Alliance & Leicester's chief executive officer David Bennett will allegedly receive a bonus of up to £750,000 if he continues to work for the bank for a year after it is taken over by Spanish company Banco Santander, according to Bloomberg.
