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Mortgage approvals on the rise

Mortgage approvals on the rise

Category: Mortgages

Updated: 27/01/2010
First Published: 25/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Mortgage approvals by UK banks for domestic properties increased again in July - the seventh consecutive rise, according to the British Bankers' Association (BBA).

Figures from the group revealed that the number of fixed rate mortgage approvals last month totalled 38,181 – a 7.4 per cent improvement on June, when the figure was 35,235.

However, the BBA said the number of mortgage approvals and the amount of new lending was below seasonal expectations.

The average value of approved mortgages also increased, from £136,400 to £139,700.

"The number of mortgages approved for home purchase each month by the high street banks have continued to recover from last November's low point, but new lending is largely being offset by repayments, so net rises remain relatively weak," said BBA statistics director, David Dooks.

The number of remortgaging loans registered a month-on-month rise, increasing to 30,600, with the average worth some £131,000.

New spending on credit cards amounted to £5.8 billion but consumers actually paid back more, with £6.2 billion wiped off credit card debt in the UK last month.

Unsecured personal loans fell to £1.3 billion. "Unsecured borrowing is subdued with households focused on managing their personal finances and building up deposits," added Mr Dooks.

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