Mortgage approvals up - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Mortgage approvals up

Mortgage approvals up

Category: Mortgages

Updated: 27/01/2010
First Published: 30/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Hopes that a recovery in the housing market is under way have been fuelled further after figures from the Bank of England revealed the number of loans approved for house purchases rose to 37,937 in February.

The surprise news represents a rise of almost 6,000 compared to January when there were 32,000 approvals.

It is the highest figure recorded since May last year and also more than ten thousand higher than the record low of 27,330 seen in November.

Recent surveys have suggested that, against a backdrop of low interest rates and falling house prices, buyer enthusiasm is on the rise.

Simon Rubinsohn, the Royal Institution of Chartered Surveyors' chief economist, said it was further evidence that the pick-up in buyer interest in the housing market is feeding through into actual activity.

"This reflects in no small measure the improvement in affordability in the wake of the 20% drop in house prices and the sharp reduction in borrowing costs," he added.

Paul Samter, chief economist at the Council of Mortgage Lenders has urged for a degree of caution, however, noting that only month-on-month increases would truly denote marked improvement and recovery in the housing market.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Building societies winning the mortgage rate war

Competition is fierce in the mortgage market, and borrowers may assume that the rates from banks will be significantly lower than those elsewhere. However, things aren’t as they seem, as building societies are the winners of the mortgage rate war.

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.