In 2010 the total number of mortgage approvals totaled 400,000, according to data released by the British Bankers Association. Compared with 2009 there was a 10 percent decrease. This number does not reflect those that wanted to obtain a mortgage only approvals.

Lending tightened in 2010 and so borrowers found that it was much more difficult to obtain the credit needed to obtain a mortgage. The difficulty in borrowing has caused a decline in demand within the housing market. The result has been a drop in house prices. Despite the more attractive purchase prices and the ability to obtain better property for a smaller cost, borrowers have not been able to capitalize on the prices due to the constricted lending.

Lending is expected to remain tight with economists forecasting a considerable drop in mortgage approvals in 2011. Due to public spending cuts, inflation and other economic hardships lenders are being cautious at extending credit. They cannot afford another round of high defaults against their balance sheet.

While lenders will remain tight fisted with credit, consumers are expected to be less in demand of lending. The current trend has seen paying down debt versus obtaining credit.

Despite the bleak forecast for lending there are still good deals to be found. Remortgage has seen a surge in recent months as homeowners have searched out good deals as warnings mount that base interest rate is due to increase. For those with good credit and the ability to gather the required deposits that make the lenders less cautious, great mortgage deals can still be found. Though lenders will remain tight they will still be shopping for customers and they will be offering attractive deals to pull in those willing to sign the dotted line.