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MORTGAGE APPROVAL INCREASE A SIGN OF IMPROVEMENT?
July 2009
AN East Lancashire property expert has welcomed news that mortgage approvals hit their highest level for more than a year in June in the hope that it could be a sign that the market is improving.
The Bank of England has announced that approvals for home loans totalled 47,584 – up from 44,169 in May, and the highest level for more than a year.
However, mortgage lending itself was lower than expected.
Graham Ireland, conveyancing partner at Haworth & Nuttall Solicitors, a law firm with offices in Blackburn, Accrington and Great Harwood, gave the news a cautious welcome.
He said: “The property sector has been waiting for mortgage lenders to increase the amounts available to borrowers for some time. One of the key reasons the market has not improved quicker and seems to have stalled is because of the lack of mortgage lending available to first time buyers.
“Market activity is still low; there are not as many house sales being completed as we would like to see.
“The economy still has a long way to go for a full recovery, but this is, hopefully, a step in the right direction.”