Purchase approvals soar 81% year-on-year

23 September 2009

There were 38,095 mortgages approved in August by the major banks, slightly lower than the levels seen in July.

But the latest figures are a massive improvement from the 21,001 house purchase approvals seen last August, prior to the onset of the financial crisis.

Remortgage approval levels continued their decline into August, with 26,124 remortgages approved last month.

This represents a 47% decline from the 49,687 remortgage cases approved in August 2008.

House purchase loans accounted for £5.2bn of lending last month out of a total of £8.6bn in gross mortgage lending.

Gross mortgage lending has averaged advances of £8.4bn over the last six months.

David Dooks, statistics director at the BBA, says: “The main high street banks’ mortgage lending has stabilised in a market where other lenders are largely inactive.

“Loans approved for house purchase have recovered to early 2008 levels, but low
levels of customer demand and a limited number of properties coming onto the market will continue to moderate lending.

“In reaction to the economic conditions, consumers appear to be building up their
savings and controlling their appetite for unsecured borrowing.”