View more on these topics

Mortgage approvals rise 10% in August

Mortgage approvals rose 10 per cent between in August to hit £7.7bn, up from £7bn in July, according to the latest figures from the British Bankers’Association.

But gross lending was broadly static at £6.9bn in August, down from £7.1bn in July.

Net mortgage lending grew by 0.6 per cent in the year to August but fell £0.3bn when compared to July’s figures.

BBA statistics director, David Dooks says that people are acting conservatively in this weak economic environment, maintaining debt repayments and building up deposits, particularly in ISAs.

He says: “Household mortgage approvals are improving slightly but unsecured borrowing continues to be subdued.

“Weak trading conditions persist so companies may well remain reluctant to borrow for investment or expansion in these conditions.”

The average approval value for a house purchase fell by 1.4 per cent, from £161,100 in July to £158,900 in August.

Capital Economics’ property economist Matthew Pointon says: “The total number of mortgages approved in August continued to recover from June’s three and half year low, increasing by 6 per cent m/m. A similar monthly growth rate was recorded for approvals for house purchase, which now stand at 30,533. Re-mortgaging activity saw a slightly larger increase on the month of 10.5 per cent. But at only 17,558, re-mortgaging is still close to historical lows.

“The recovery in lending in August does little to change the picture of a very subdued mortgage market. And while it is possible that lending activity was depressed during August due to the distraction of the Olympics, we doubt such factors can explain why approvals for house purchase are still 13.3 per cent lower than their level a year ago.”

Recommended

Brokers expect boost to bridging business over next 12 months

Brokers expect an average of 45 per cent more bridging business in the next 12 months as mortgage rates are predicted to drop while LTVs rise. Around 39 per cent of brokers asked as part of the latest West One Broker Sentiment survey expect mortgage rates to fall while 43 per cent expect there to […]

Traders to be struck off over rate manipulation

Traders found to have manipulated the Libor rate should be fined and banned from the the approved persons register according to the British Bankers Association.

2

Significant increase in mortgage availability says BoE

The availability of mortgages increased significantly over the past quarter, with expectations high for the next three months based on the Funding for Lending scheme, according to the Bank of England today. The last three months saw the largest increase in secured lending to households since the survey started in 2007. The results of the […]

2

L&G launches Gender Response Team

Legal and General is launching a gender response team in anticipation of the approaching EU Gender Directive deadline on 21 December.

Newsletter

News and expert analysis straight to your inbox

Sign up