Mortgage Approvals at a Three Year High
According to recent Bank of England figures, mortgage approvals are at a three year high, BBC News reports. In May 2013, 58,242 home loans were approved- up from 54,354 the previous month. These are the highest figures to have been reported since 2009.
This is in striking contrast with the amount of money being lent to businesses, which continues to fall. Despite the government’s Funding for Lending Scheme, business lending has fallen by 3.6% over the past year. Although the scheme’s intention was to encourage building societies and banks to make more loans, it appears to have been more beneficial to homeowners.
These new figures confirm the recovery in the mortgage sector that the banks reported last week. The BBA stated that mortgage approvals last month had seen an increase of 24%, compared with this time last year.
Philip Shaw, an economist with Investec, said, “No real surprise that the mortgage figures were strong… The Funding for Lending Scheme is helping to increase mortgage availability and push down mortgage rates.”
While there is a marked improvement in the demand for properties, the number of approvals is still down by less than half from a decade ago. At the end of 2003, 133,000 mortgages were approved by banks and building societies.
As mortgage broker Mark Harris says, “The health of the housing sector is showing a slow and steady improvement but it is by no means out of intensive care yet.”
In the present circumstances, it is more vital than ever to find the right mortgage service provider for your needs. If you’re seeking a trustworthy mortgage advisor in Surrey, we will be only too pleased to help you choose the right mortgage for your needs and apply to the lender on your behalf.