BBA: Mortgage approvals up to 15-month high

Permalink: BBA: Mortgage approvals up to 15-month high
by Kay Murchie

There are further signs of recovery within the housing market after the British Bankers’ Association (BBA) said mortgage approvals by the major banks rose to a 15-month high in June.

According to the BBA, 35,235 loans were approved during June, up from 31,919 the previous month and is the highest number since March 2008.

In the meantime, the June figure is 65% up on the same month a year ago and raises hope of a recovery in the property market.

In addition, the number of approvals for remortgaging saw a marginal increase in June compared with the previous month but was down 52% compared with a year ago.

Earlier this week, HM Revenue & Customs (HMRC) has revealed a rise in the number of homes sold in June in the UK.

According to HMRC, 75,000 homes worth at least £40,000 or more were sold in June - a rise of 15% when compared with May.

The HMRC said this was the highest level of activity for 12 months but the figures are still well below the level of transactions seen during the housing market boom.

David Dooks, statistics director at the BBA, said that approvals were recovering from a very low level since late last year. However, he suggested that the improvement in mortgage lending by the major banks was in sharp contrast to a contraction in lending by other mortgage providers.

Meanwhile, Howard Archer at IHS Global Insight, said the figures gave hope that the housing market was bottoming out.