Housing bubble fears renewed as mortgage approvals jump 57% in January
Tuesday 25 February 2014
Concerns over an overheating housing market were stoked today as mortgage approvals hit their highest level since September 2007, according to the British Bankers Association.
Its figures showed mortgages for homes purchases from high street banks rose to 49,972 in January — up 57 per cent year on year and the highest number since savers were queuing outside Northern Rock at the dawn of the credit crunch.
The recent revival prompted the Bank of England to stop offering cheap funds to mortgage lenders via its Funding for Lending scheme in November.
But the government’s Help to Buy scheme remains in place to guarantee low-deposit mortgages. IHS Global Insight’s Howard Archer said: "Mortgage approvals are still modestly below their long-term average, but they are picking up with considerable gusto."
Barclays Mortgages and the Centre for Economics and Business Research warns that homebuyers face an extra £2.2 billion bill each year on their home loan payments if there are just three rises in official interest rates by the end of 2015.
In their more “drastic but potential” scenario of five rate rises — taking them to 1.75 per cent — the bill would rise by £5.5 billion. On the average London mortgage with a current monthly payment of £1,032, the moderate scenario would add £32 a month and the drastic one £73.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 Have sex with your iPad thanks to the new sex toy no-one asked for
- 3 The 'sex selfie stick' lets you FaceTime the inside of a vagina
- 4 Adam Levine's biggest fan had a panic attack upon meeting him, so the singer laid down on the floor to get a photo with him
- 5 Why you're almost certainly more like your father than your mother
Out-of-touch MPs ‘don’t get it’, says ex-Civil Service chief
Mark Zuckerberg: Facebook CEO's one simple test for who to hire
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...