The UK’s housing sector keeps slowing as fewer and fewer people are approved for home loan deals, it has been revealed.
According to the latest data from the Council of Mortgage Lenders (CML), the loans handed out in May were worth a total of £25.5 billion, which is considerably less than the £31.5 billion lent during the same month in 2007.
Many homeowners are finding themselves with a serious debt management headache but in general the performance of the remortgaging sector has been the biggest cause for optimism for the CML.
A statement from the council read: "The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market despite recent bad news."
However, when it comes to house purchase activity, the CML expects to see "very weak" markets over the coming months.
Last week, the CML suggested that fixed-rate mortgage deals are becoming increasingly popular across the country as Britons aim to avoid money problems if the base rate of interest rises.