Insurance News Archive
Property insurance: Mortgage lending stabilises in August
Written by Jonathan Walker
The value of lending for house purchase rose last month, although the number of loans handed out fell slightly, according to the latest figures.
A report from the Bank of England showed that £7.2 billion worth of home loans were granted to people looking to buy, up from £7.1 billion in July, which may interest those with property insurance.
However, the number of loans handed out in August was 52,317, down from 52,404 the month before.
Nevertheless, both the value and number of loans handed out was an improvement on the previous six month average of 45,787 products worth £5.8 billon.
Lending for remortgaging fell, down from 33,880 to 29,059, with the value of loans dropping from £4.4 billion to £3.8 billion last month.
Commentators have continued to stress that a shortage of financing is hampering the property market, but Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said that this is not the only issue.
"The lack of appropriate properties on the market is compounding the problem by leaving prospective buyers with little real choice in some parts of the country," he claimed.
30 Sep 2009
