Home.co.uk
Home.co.uk

News: Mortgage approvals hit 15-month high

Figures from the Bank of England show the number of new mortgages approved by lenders, but not yet lent, rose to a 15-month high of 107,000 in September, down slightly on August, but providing further evidence that the housing market is beginning to recover after August's cut in interest rates.

Meanwhile, the amount of confirmed new mortgage lending also rose last month - up from £7.6 billion to £7.7 billion.

Whilst the housing market may be showing signs of renewed vigour the same can't be said of the more general economy where the amount of unsecured lending by people continues to slow. Figures here, also from the Bank of England, show consumer credit, such as loans, credit cards and hire purchase agreements, growing at an annual rate of just 10.9%. That's a near 11-year low.

Expectations are that consumer credit will continue to remain muted as consumers exercise caution.

The overall message however is that housing market activity has improved significantly in H2 and decreases the likelihood of it impacting negatively when it comes to growth in the economy in general.

Back to: News Index