SAB - the property specialists

Leading Cambridgeshire, hertfordshire
and London property specialists since 1959


May 30, 2013

Mortgage Approvals on the Up

Mortgage approvals rise

The British Bankers' Association (BBA) has said mortgage approvals rose 0.9% on an annual basis in April to 32,153, the highest seen since January. However, the value of approvals fell 1.1% over the same period, to £5bn taking the average loan value to £155,900 from £159,400 a year ago. The BBA predicted a further rise in mortgage approvals this year, aided by various Government schemes such as Help to Buy. The figures also show that households paid off £241m more mortgage debt than they borrowed in an effort to get on top of their debts. Before May last year, net lending had never been negative since the BBA started collecting the data in 1997. Repayments have now outweighed new borrowing for eight of the past 12 months. In the corporate sector, total stock of lending fell by £2bn to £284bn in April. The BBA said households were taking advantage of low interest rates to increase capital repayments but it warned that gross lending was marginally below the recent monthly average.