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Mortgage approvals continue to rise

23 June 2009 / by Rebecca Sargent
The number of loans approved for house purchase by UK banks continued to rise in May, the latest statistics from the British Bankers Association (BBA) have revealed.

The number of mortgage loans approved increased from 29,000 in April to just over 31,000 last month, returning to levels not seen since early 2008.

Mortgage approvals have now increased for six consecutive months, commenting, BBA statistics director, David Dooks said: “Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008.”

According to Mr Dooks the news is a sign that mortgage availability is improving.

Speaking of the statistics, chief economist at the Royal Institution of Chartered Surveyors (RICS), Simon Rubinsohn said: “This pick up in demand is broadly consistent with the rise in buyer enquiries signalled in the monthly RICS housing market survey.”

However, despite the increase in mortgage lending, housing market research from Rightmove revealed yesterday that first time buyers continue to be priced out of the market, and the number of new instructions for house sale is dwindling according to RICS.

Mr Rubinsohn added: “The continuing lack of mortgage finance for first time buyers allied to a diminishing stock of instructions on estate agents books remain very real issues for the housing market to deal with.”

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Written by Editorial Team