Increase in new mortgage approvals

Published:
23 October 2008
Topic:
News,Money,Mortgages

New figures show that, while the number of mortgages approved for people buying a new home remains lower than a year ago, it did rise during September.

Data from the British Bankers' Association revealed that a total of 23,422 loans for house purchase were approved during the month, 10% more than in August, but 57% lower than 12 months previously.

Net mortgage lending, which strips out redemptions and repayments, also saw a rise, increasing to £3.6 billion - up from just £2.1 billion in August and the lowest figure since February 2001.

However, net lending still remained below the previous six-month average of £4.1 billion, and was well down on the £6.4 billion seen in September 2007.

David Dooks, BBA director of statistics, said: "Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level."

He said that two-thirds of all new mortgages were being written by high street banks as the market became more "concentrated".

The figures also revealed outstanding credit card debt rose by just £78 million once interest and charges were taken into account.

Consumers saved £1.13 billion in September although the amount deposited remained below the recent six month average.

Copyright © PA Business 2008

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