More Brits get mortgages

21 December 2005
More Brits successfully applied for loans in November, new figures have revealed.

Data from the Council of Mortgage Lenders (CML) found loans approved by building socities increased by 20 per cent year-on-year and was up five per cent in November alone.

Analysts say strong mortgage lending will strengthen the property market.

"After the doubts about the health of the housing market expressed by some commentators earlier this year, the latest figures show a robust market," said Adrian Coles, director general of the Building Societies Association.

"Loans advanced by building societies are up almost 20 per cent year-on-year and approvals, loans promised but not yet made, are up by over a third. The housing market has clearly recovered from the effects of the sharp increase in interest rates which peaked at 4.75 per cent in August 2004."

However, experts said that increases in mortgage lending did not automatically signal that house prices were to increase rapidly.

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