New home loans at three-month high
Friday 31 May 2013
Mortgage approvals to home buyers edged up to a three-month high in April, in further signs of a housing market pick-up.
Some 53,710 approvals worth £8 billion were made for house purchase, marking the highest number seen since January, the Bank of England reported.
The report adds to a series of studies indicating that confidence is returning to the housing market and that people are finding it easier to get access to a mortgage.
Building society Nationwide reported yesterday that house prices had recorded their strongest year-on-year growth in 18 months in May.
The number of mortgages on the market has sharply increased and lenders have slashed their rates to some of their lowest ever levels since the Government launched its Funding for Lending scheme last August, which gives lenders access to cheap finance.
Other schemes, called NewBuy and Help to Buy have also been introduced specifically to give people with smaller deposits a helping hand.
The Council of Mortgage Lenders (CML) has been reporting increased first-time buyer numbers in recent months and estate agents have also said that more "serious" buyers are entering the market.
Despite the recent uplift, Howard Archer, chief European and UK economist for IHS Global Insight, said that the continued squeeze on household finances from low wage growth and high living costs will still act as a drag on housing market activity.
He said: "While a moderate rise in house prices over 2013 looks ever more probable, a strong upward move remains unlikely given a still challenging and uncertain economic environment despite the recent signs of limited improvement."
The Bank's figures also showed that credit card lending fell back to the lowest levels seen since last October, with a £102 million increase recorded in April.
Lending on personal loans and overdrafts increased by £422 million, which was the highest figure seen since the Christmas period in December.
Analysts have said that there is generally still a strong desire among consumers to pay down their debts and shore up their savings amid the uncertain economy.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Fifty Shades of Grey trailer provokes moral outrage from US parenting groups
- 4 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 5 Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
Costa Concordia finally towed from Giglio amid environmental concerns that cruise liner is a 'floating bomb'
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...