Home loans up, Bank reports

The number of home loans approved grew in between February and March, newly released statistics have revealed.

Research from the Bank of England has shown that 39,230 mortgages were borrowed in March, up from 37,716 the month before.

In addition, it found that the level of remortgages increased from 31,676 to 31,756 during the period.

Overall, consumer credit was unchanged, with net growth in this sector remaining the same at £0.1 billion.

However, more people may be facingcredit card debt, as lending on these products rose by £0.3 billion, while loans and advances dropped by £0.1 billion.

Figures recently unveiled by the British Bankers’ Association noted that gross mortgage lending stood at £8.9 billion last month, its lowest level since April 2001.

“It would be unrealistic to expect the mortgage market to recover in a steady and consistent way in the current economic environment,” remarked statistics director David Dooks.

By Jamie Price