Mortgage approvals rise again

Category: Mortgages
Date: 6/29/2009

Further evidence of a recovery in the housing market has been revealed by the Bank of England.

The number of mortgages approved for house purchase increased to 43,414 in May, the fourth month in a row that an improvement has been reported.

However, remortgaging activity slumped to a new low of 30,984 in that time, down from 31,701 in April.

"This may reflect, in part, a dmegree of satisfaction with the low standard variable rate mortgages that many homeowners have moved onto as existing products terminate," said Simon Rubinsohn, RICS chief economist.

"It could also capture the difficulty other borrowers, who have slipped into negative equity or now require high loan to values as a result of price house declines, are facing in finding a more attractive alternative offering."