Mortgage approvals double in twelve months
February 13, 2010
Recently released figures have shown that the level of mortgage approvals in the UK actually doubled in the twelve months to November of 2009. The figures were released recently by the Bank of England, and officials from the central bank have said that the increase in mortgage approvals over the twelve months period is a further sign of recovery in the property and mortgage markets.
The figures from the Bank of England showed that in November of 2009 there were 60,518 mortgage loans that were approved for those buying a home, and this was more than double the number of approvals in November of 2008, which came in at a record low of just 27,162. The figure for November was the highest seen since March of 2008. Net lending levels also increased in November of last year, coming in at the highest level since February.
The increases in property prices that have been seen over recent months have encourage more people to put their properties on the market, and this greater level of supply has generated more interest from would be buyers. It appears that mortgage approvals have also increased in line with the increase in properties being put up for sale and buyers expressing interest in properties.
One economist from the Ernst and Young ITEM Club said: ‘An acceleration in mortgage approvals and higher mortgage lending bodes well for housing market prospects, but it is unlikely to be sufficient to sustain the rapid price increases seen over the second half of 2009. Supply pressures are likely to abate as the price increases encourage more people to put their properties on the market, and with unemployment continuing to rise, demand will remain weak.’
There is also evidence that people are using their spare cash to make greater repayments on mortgages and unsecured debts rather than saving as a result of the low returns currently available on savings.
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