Insurance News Archive
Mortgage approvals rise by 19% in February
The number of mortgage approvals for house purchase rose by 19 per cent in February, reaching the highest level since May last year, the latest figures show.
According to the Bank of England's statistics, 37,937 home loans were granted last month, up from 31,791 in January.
Total lending to individuals rose by £1.3 billion in February, marginally higher than the £1.2 billion increase the month before, but below the six month average of £1.5 billion.
Estate agents have reported an increase in buyer interest in recent months, while the British Bankers Association released figures last week showing that Britain's high street banks approved £3.9 billion worth of loans for house purchase in February.
Commenting, on the Bank's statistics, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "This reflects in no small measure the improvement in affordability in the wake of the 20 per cent drop in house prices and the sharp reduction in borrowing costs."
He added that accessibility to the market is still a problem, however, particularly for first-time buyers.
30 Mar 2009
