Remortgage figures on the up
The number of mortgages for new homes being approved in January experienced a slight rise while remortgage approvals showed a much healthier increase.
The Bank of England's lending figures, unveiled today, showed 74,000 loans were approved for new house purchases in January, compared to 72,000 in December.
However, this slight increase is still a far cry from the 88,000 approvals which were given in October 2007 reflecting the impact economic conditions have had on the mortgage market.
The remortgage market, however, has continued to enjoy a steady rise in approvals over this time. The Bank of England's figures reveal 119,000 remortgages were approved in January, compared to 101,000 in December and 88,000 in October.
The Bank's monthly report on lending to individuals also showed there had been an increase in net lending in January to £8.4 billion, but this was below the increase in December and the previous six month average.
The increase in net lending secured on dwellings was at £7.4 billion, which also came in below the increase seen in December and the previous six months.
Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, said the "modest" rise in mortgage approvals in January came as no surprise to the organisation. The figures, he said, were consistent with its figures on new buyer inquiries.
He added: "But, significantly, the 74,000 approvals granted to home-buyers during the month still remains close to historic lows and represents a 40 per cent decline compared with January a year ago.
"In contrast remortgaging activity has been picking up sharply in recent months. This reflects both the drift down in mortgage rates and the ending of a large number of fixed rate mortgage products which need to be refinanced."
Source: http://www.myfinances.co.uk/news/mortgages/property/
buying-property/remortgage-figures-on-up-$1208587.htm
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