The number of bank-approved mortgages for house purchases has increased again in June to a 15-month high, BBC News has reported.
The British Bankers? Association (BBA) has reported that the latest figures for mortgage approvals in June have shown an increase from 31,919 in May to 35,235 in June. The BBA say these numbers for approved mortgages for house purchases are the highest for 15 months.
This buoyancy in approved mortgages has naturally led to hope for buoyancy in the property market. Not everyone is so positive though and Andrew Montlake, mortgage broker Coreco?s director, feels the property market remains pretty consistent.
Mr Montlake said: ?Some recent mortgage figures, including the BBA?s, have led some to suggest things are finally beginning to pick up, but I don?t buy it. From where I am standing, the next few months are still going to be exceptionally difficult for borrowers and this will only change once the lenders begin to lend ? and they are still not lending at levels sufficient to drive a sustained recovery in the property market.?
Despite the increase in mortgage approvals for house purchases, the average mortgage being approved by the major banks is for ?136,400. This figure is almost 11 per cent lower than 12 months ago and highlights the fall in house prices since 2007. Nevertheless, in terms of gross mortgage lending, this saw an increase for the first time in 15 months.
The property market remains uncertain but stable, and the fact the major banks are approving more mortgages for house purchases reflects an increasing confidence.
