Mortgage approvals hit five-month high in November: BBA |
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Sat, 30 Dec 2006 18:20
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LONDON - The British Bankers' Association has revealed that mortgage approvals in the UK hit a record in the five months ending November. The value of approvals soared from the £10.82 billion in October to £11.43 billion in November, which is the highest since June.
These figures echo the data provided by the Council of Mortgage Lenders, which said that November approvals were worth £33.1 billion. The high level of approvals seems to indicate that the housing market will continue to remain strong in the coming months.
"In the mortgage market, the high number of loans approved in November, which is not usually a strong month, suggest that the trend in mortgage lending will continue to be robust over the next few months," said David Dooks, director of statistics at the BBA.
In November 206,051 mortgage approvals were tabled and were valued at £23.0 billion. This was a 6.8 percent increase over November 2005 when the value was 20 percent lower. The report said that the average approval was worth £146,900.
However consumer credit growth was muted by contrast, growing by only 2 percent. Lending on loans and overdrafts was also dismal and dipped by £100 million in the two months to November.
"Monthly spending on credit cards and the value of new personal loans taken out have been generally lower in 2006 than in the previous couple of years, while repayment levels have been maintained, leading to this year's picture of subdued borrowing," Mr Dooks added.
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Mortgage approvals hit five-month high in June 