Mortgage approvals are at a two-year high

Nov 25 2009 by Iain Laing, The Journal

THE number of mortgages approved for house purchase rose to its highest level for nearly two years during October as buyers continued to return to the market.

Around 42,238 loans were approved for people buying a property during the month, nearly double the number seen in October last year and the highest level since January 2008, according to the British Bankers’ Association.

Net lending, which strips out redemptions and repayments, also held firm at £3.1bn. But unsecured lending remained subdued as consumers instead focused on paying down their debts and building up savings.

Both spending and repayments on credit cards was unchanged from the previous month at £5.7bn and £6bn respectively.

But once interest and charges were taken into account, outstanding credit card debt rose by £199m – double the average rise seen during the previous six months.