Mortgage lending ‘on the up’

Increased mortgage lending is being seen among the main high street banks, with the number of loans being approved for homeowner purchases climbing back to the levels recorded at the end of 2007, the British Bankers’ Association has revealed.

Statistics director with the organisation David Dooks observed this improvement has continued “from the lows seen earlier this year” and the number of purchase approvals is also recovering.

However, he did say that activity in the housing market is dependent on the number of properties entering it and there are other suggestions of “subdued consumer confidence”, such as “a reduced appetite for unsecured borrowing and more saving”.

Earlier this month, it was revealed by moneysupermarket.com that remortgages have grown in popularity, compared to other products, with search statistics indicating that – although more queries relating to moving home loans were registered in August and September – the gap between different types of credit had decreased.

By Sarah Adie