The Bank of England has reported that there have been more mortgage approvals in February then they expected. Official figures show that there were 38,000 approvals in February, up from the previous months 32,000.
Another source of good news is that February was the biggest net repayment of consumer debt since April 1993, when the records began. Around ?245 million worth of credit was repaid compared to how much they took out in February, having taken on an extra ?165m of credit in January.
The signs which seem to make people think it?s safe to go back into the market are the low interest rates and falling house prices, according to BBC News.
Vicky Redwood at Capital Economics was positive about the figures but also realistic: ?February?s household borrowing figures suggest that housing market activity may finally have turned a corner. However, approvals have a long way to go before they get to levels that are no longer consistent with falling house prices ? in fact they need broadly to double.?
The Building Societies Association?s (BSA) figures showed that mutual societies had received their highest net deposits on record in February, with ?1,595 million more deposited than the amount withdrawn. Brian Morris, head of savings policy at the BSA, said: ?Despite the Bank Rate being so low people are still keen to save, probably in response to the uncertain economic outlook and reduced job security.?
Last year, gross mortgage lending by building societies was at ?3,861 million in February but this year it was at ?1,214 million.
