The total sum of mortgages approved by the main UK banks was 81 per cent higher this August than the amount of mortgages passed in August 2008, BBC News has reported.
This news comes despite the slight dip in the number of houses sold in August compared to July. However, the first seven months of the year saw consecutive rises in property purchases.
The British Bankers? Association (BBA) remains cautious though, and stated that the rise in mortgage approvals seemed greater than it is because of the low levels of mortgage lending 12 months ago. In August 2008, 21,001 mortgages were loaned to home buyers, whereas this August there were 38,095 mortgages approved.
David Dooks, the BBA?s statistics director said: ?In reaction to the economic conditions, consumers appear to be building up their savings and controlling their appetite for unsecured borrowing.?
In terms of the number of house sales, figures were down in August by 4,000 compared to July, according to HM Revenue and Customs (HMRC) and stood at just 83,000. This was a 19 per cent increase on August 2008 though.
Ray Boulger of mortgage brokers John Charcol, commented that the mortgage lending numbers for August were fairly expected as the property market was at its lowest point around 12 months ago. He said: ?In the mortgage market, banks are doing their bit, but other sectors of the market are not lending or their lending has contracted.?
Mr Boulger also went on to add that he predicted house prices would maintain a steady increase should interest rates stay low.
