Mortgage News
BBA data shows massive rise in approvals
The latest figures from the British
Bankers’ Association (BBA) have revealed an increase in the number of house purchase
approvals, although the trade body warned that lending will continue to be moderate in the near future.
The statistics showed that house purchase approvals from the major banks in August were 38,095 – an 81% increase compared to the 21,001 approvals recorded last August.
Net mortgage lending rose by £2.8bn in August while gross mortgage lending in August rose by £0.1bn to £8.6bn, with house purchase loans accounting for £5.2bn of lending out of this total.
David Dooks, statistics director at the BBA, explained that lending would still be moderate due to a low level of demand and a limited number of properties coming onto the market.
Simon Jones, executive director at Savills Private Finance, said it was too early to make assumptions that the market was recovering.
He added: “The figures are encouraging but approvals have risen from a record low figure last August. Demand is still suppressed because consumers are saving for larger deposits and this will continue for some time.”
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