The drop in re-mortgaging is an ominous sign for UK house prices

There was more gloom for the UK's property market this week, as the number of remortgages being approved fell sharply. Matthew Partridge explains why it matters, and what it means for Britain's house prices.

One of the main things propping up Britain's housing market is cheap money. The fact that you can get a mortgage for less than 3% means that even overpriced homes look tempting.

However, there's a catch. While the cost of loans is very low, the supply is as well. Many of the very best rates require deposits of 40% - a non-starter for most buyers. Even those who are able to get together that sort of deposit face almost unprecedented levels of scrutiny, with lenders looking for any excuse to knock back applications.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri