Mortgage approvals rise slightly

Published 30th Jan 2009

The number of new mortgages approved for home buyers picked up slightly in December, says the Bank of England.

There were 31,000 mortgage approvals, up from 27,000 in November, but still the second lowest figure on record.
Green shoots?

In the past few weeks some commentators have suggested that activity, if not prices, in the housing market might be about to start picking up.

Surveyors and estate agents have reported a rise in enquiries from potential new buyers.

The slashing of interest rates in the past few months by the Bank of England has meant that mortgages are much cheaper to repay, for those borrowers who are able to obtain a home loan.

The Royal Institution of Chartered Surveyors' (Rics) chief economist, Simon Rubinsohn , suggested mortgage approvals might rise again in the next few moths

"The pick-up in activity reflects in part the increased interest from buyers who are being attracted to the market by both the fall in house prices and drop in mortgage rates," he said.

Source: ' BBC '

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