New home loans at highest level in over a year
It was recently reported by the British Banker’s Association that the level of new home loans for the month of May jumped to its highest level in over a year.
The increase in mortgage approval levels for the month resulted in the highest level for thirteen months, and officials from the British Banker’s Association said that it was a sign that banks were finally starting to relax the stringent lending regulations that have come into place since the onset of the global credit crunch.
The month of May saw 31,162 mortgage approvals for new house purchases according to the BBA, and this was the highest level since the early part of 2008. Compared to the month of April of this year this also reflected an increase of around 7 percent.
However, the overall amount of money that was lent out by banks actually fell even though the number of new mortgage approvals increased. Net lending for June was around 37.7 billion, and this was the lowest level since February 2001.
An official from the BBA said: ‘Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008, although gross and net mortgage lending show a subdued wider mortgage picture. However, unlike much of the mortgage market, the high street banks are still seeing lending growth and improved mortgage availability is reflected in higher average loan approval values.’
Another industry official said: ‘It does appear at least after a traumatic 18 months that some level of balance has returned to the market. However, it would be a dangerous game to read too much into these latest figures. On the one hand, it is an encouraging sign that mortgage approvals are at their highest level for 13 months. However, remortgage levels continue to fall which suggests people are still playing the waiting game where fixed rates are concerned.’
Related Posts
BBA reports increase in mortgage lending levels
The British Banker’s Association has recently reported that whilst mortgage lending did hit rock bottom levels over the past couple of years June saw mortgage lending levels increase to their highest level in around fifteen months. »
Fall in house prices but increase in lending
Recent figures have shown that property prices fell for a sixteenth month in a row in January.
House prices have been plummeting for the last year and a half, with homeowners seeing thousands of pounds worth of equity being wiped of the value of their homes. »
Mortgage lending continues to rise
Figures that were recently released by the Council of Mortgage Lenders have indicated that mortgage lending in the UK is continuing to rise following a very volatile eighteen months where lending levels plummeted. »
Mortgage approval levels increase in February
Recently released figures have shown that the level of mortgage approvals for the month of February increased by more than many industry officials had been expecting. »
Increase in mortgage approvals for April
Despite the doom and gloom that has been surrounding the mortgage markets over the past year or do, recent figures have shown that there was an increase in mortgage approvals for the months of April, brightening the dark mood that has been surrounding the mortgage industry over recent months. »