UK Mortgage Approvals Exceed Expectations In October
UK Mortgage lending reached an 11-month high in October, providing evidence that the housing market may finally be picking up, after a lull in recent months, according to the Council of Mortgage Lenders (CML).
Gross mortgage lending rose to £12.9 Billion (GBP) and was 4% higher than in the same month in 2011, indicating that the government’s Funding for Lending scheme, designed to boost lending to households and businesses, is having some effect.
The latest figure marks a reversal of the sharp dip recorded in September 2012, when loans worth £11.4 Billion (GBP) were advanced, compared to £12.9 Billion (GBP) in August.
The Treasury and the Bank of England launched the £80 Billion (GBP) Funding for Lending scheme at the start of August 2012, and it has already resulted in an increase in the number of mortgages on the market – although many of the best deals so far have been aimed at people with larger deposits.
The British Bankers’ Association said that there were 33,039 UK mortgage approvals in October 2012, a figure that was much higher than expected when compared with the 31,544 mortgage approvals in September 2012.
Economists had previously forecast a smaller increase in mortgage approvals to around 32,000 as Gross mortgage lending was slightly above the recent monthly average at £7.5 Billion (GBP),.
The BBA’s figures also showed that customers repaid more unsecured credit than they had borrowed in October, with a net repayment of £207 Million (GBP), compared with net borrowing of £76 Million (GBP) in September.
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