6 July 2010

During Spring mortgage lending reached its highest level so far this year, with 36,709 loans approved in March.

The figures, released by the British Bankers’ Association, are welcome news to UK home buyers, as increased mortgage lending will provide them with the financial assistance needed to make their next move. The BBA commented that they had seen three consecutive months of increasing mortgage approval numbers, and that their members accounted for 75% of new mortgage lending.

In contrast, HM Revenue & Customs, announced that completed property sales remained flat for the Spring three month period, with sales in May reaching 73,000. This is just 1,000 more than completed sales in March and April.

Despite not being anywhere near the levels seen in the peak of the property market in 2007/2008, these figures are still higher than seen this time last year.

Interestingly, re-mortgaging represented that largest proportion of loan approvals, with 24,626 requesting new or replacement loans on their existing home.


The BBA said that households are using these loans to pay off their debts. David Dooks, BBA director of statistics, added: “The low interest rate environment is resulting in customers choosing to reduce or pay off borrowing, particularly personal loans, rather than saving.”

 

Source: BBC News

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