Aug/090
More Evidence of Housing Recovery
The British Bankers’ Association have today announced that high street banks are steadily approving mortgage applications on an upward curve. For the seventh month in a row approved mortgages increased after July’s figures of 38,181 were revealed - an increase of almost 7.5% on the previous month.
Following the current trend, economists are predicting that the rate of growth will increase way into the Autumn months and possibly beyond. Despite this, the BBA point out that figures were way below the seasonal predictions and this was even more of a concern given the increased demand for mortgages.
As the credit crunch worsened during the early months of 2008, one figure stood out as a key indicator. This figure was the number of approved mortgages in July 2008. Since that time, the figure has increased by 77% percent in 12 months.
The average amount borrowed was £139,700 in July but the concerns surrounding this were eased when the group’s statistics director David Dooks commented that banks were being “more realistic” over how they lend and who they lend to.
He said the ability of potential buyers to pay a deposit and long-term sustainability were key issues when banks decided whether to offer a mortgage. Property prices would also “stall” for some time.
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