Mortgage approvals edge up slightly in February
Share
The latest figures from the British Bankers’ Association show the number of mortgage approvals rose to 72,309 in February, up from 70,776 in January.
House purchase approvals were slightly higher than in January but 11% lower than in February 2010.
The annual growth of the banks’ net mortgage lending was 2.5% in February, remaining substantially ahead of the 0.7% for the whole mortgage market in January.
But gross mortgage lending of £7.9bn in February was slightly lower than the recent six month average of £8bn and 8% lower than gross lending in February 2010.
David Dooks, statistics director at the BBA, says: “Mortgage lending remains subdued, with only remortgaging on an upward trend, as borrowers lock into lower rate products currently available. Household demand for unsecured credit is also weak, as people continue to cut back on borrowing and build up deposits.
“With repayments by businesses exceeding new borrowing business lending is still contracting but at a slower rate suggesting that businesses’ adjustment to their trading environments may be stabilising.”
John Mawdsley, chief executive officer of Omnii Solutions, says: “Household finances may have been ransacked by inflation, and a lack of high LTV’s continue to pin first-time buyers to the rental market, but the purse-strings are beginning to loosen and that is good news for brokers.
“In the long term there will be little to cheer about until the weak macro economic foundations underpinning the mortgage market begin to show signs of recovery. Only time will tell whether the Chancellor’s growth strategy is little more than empty rhetoric.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
