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Mortgage approvals hit highest level since May

The number of mortgage approvals hit its highest level since May as it grew by 3.5% to 48,846 in November, data from e.surv shows.

sexton

The figure compares to 47,185 in October and is the first month-on-month increase since April.

The average LTV rose by almost 1% to 57.7% in November, the first increase since June, and is well up on the 53.0% from November 2009. 

Homes up to £125,000 have an average LTV of 65.1%, while houses between £126,000 and £250,000 have an LTV of 57.9% while those between £251,000 and £375,000 at 54.4%.

But properties over £750,000 have an LTV of just over 40.1%.

Richard Sexton, business development director of e.surv, says: “November was a rare bright spot for the mortgage market.  There were some very attractive products available and that stimulated a lot of demand from borrowers, both to buy homes and to remortgage. 

“Lenders are still more comfortable focusing on wealthier borrowers and are prepared to expand loan-to-value ratios more for these groups than the average, but there was also an unusually large improvement in credit conditions for the lowest value borrowers too.

“Such a strong month will be hard to beat from here, but tales of the renewed demise of the market are hard to reconcile with this sort of strength.  The market usually goes very quiet in December of course, so the next big test for the market will be in the new year.  January is the month to watch.”

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  • anon 3rd December 2010 at 3:53 pm

    “e.surv are part of the LSL Property Services plc that own First Complete, Reeds Rains and The Pink Group. I would suggest this pute him in a very strong position to comment on the market !”

    whys that then?

  • Jonathan 3rd December 2010 at 2:43 pm

    “Mortgage approvals for house purchase fell in October to 47,185, marking the sixth consecutive monthly fall, shows the latest figures from the Bank of England.”

    THIS WAS A REPORT ON MORTGAGE STRATEGY NOVEMBER 29TH? WHICH ONE IS IT THEN, MORTGAGE APPROVALS ARE THE LOWEST THEY’VE BEEN FOR 6 MONTHS OR THE HIGHEST THEY’VE BEEN FOR 7?

    SURELY BOTH CANT BE RIGHT?

  • David Copland 3rd December 2010 at 2:30 pm

    e.surv are part of the LSL Property Services plc that own First Complete, Reeds Rains and The Pink Group. I would suggest this pute him in a very strong position to comment on the market !

  • stick to your knitting 3rd December 2010 at 12:30 pm

    “Richard Sexton, business development director of e.surv, says: “November was a rare bright spot for the mortgage market. There were some very attractive products available and that stimulated a lot of demand from borrowers, both to buy homes and to remortgage.”

    i think this is rather odd coming from a surveyor???