Chinks of light for buyers as mortgage approvals creep up
Official figures show an eleven month high hit in December
January 31, 2013
The Bank of England has revealed that mortgage approvals hit an eleven month peak in December 2012 rising to 55,785 from 54,011 in November. Total lending, also increased by £1.7 billion in December, compared to the previous six-month average increase of £0.5 billion.
These figures are more evidence that the Bank of England’s Funding for Lending scheme (FLS) is taking small steps to successfully boosting lending to consumers and businesses. The scheme has set aside £60 billion to lend to banks at very low interest rates on the condition that the money gets passed on to the public. So far only about £4 billion of the total amount has been lent to banks but there are increasing suggestions that the money is making a difference.
Nida Ali, economic advisor to the Ernst & Young ITEM Club, said: “The increase in mortgage approvals and rise in net lending supports the Bank of England’s latest Credit Conditions Survey, which reported an increase in the availability of secured credit to households, as well as the recent RICS survey. Coupled with the fact that interest rates on new mortgages have been decreasing steadily, these figures suggest that the FLS is beginning to have a positive impact on mortgage markets.”