Steady rise in new home loans

The number of mortgages approved for house purchase has bounced back to levels last seen at the beginning of 2008.  A total of 42,088 loans were approved for people buying a home during September, the highest level since January 2008 and 77% above the figure for September last year, according to the British Bankers Association.

There has been a steady increase in the number of mortgages taken out by people buying a property during the past eight months as the housing market has stabilised.  The increase in property market activity is feeding through into higher mortgage lending with net lending which strips out redemptions and repayments, reaching £3.1 billion during September, the highest figure since March.  David Dooks, BBA statistics director said “Mortgage lending by the high street banks is continuing to improve from the lows seen earlier this year as the number of house purchase approvals continues to recover.

“Housing market activity will depend, however, on more properties coming onto the market.”

Approvals for remortgaging slumped to 21,282 during the month, the lowest level since December 1999 and 70% below the figure for September 20007 when the market was still functioning normally.

Consumers continued to focus on reducing their levels on unsecured debt during September.

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