UK mortgage approvals increase

Numbers of loans approved for house purchase are back to levels last seen at the end of 2007 and that increased activity is feeding through to increased mortgage lending, according to the British Bankers’ Association (BBA). Other mortgage approvals remain subdued and households are generally cautious continuing to reduce their borrowing and build up deposits.

BBA statistics director, David Dooks, said of the latest data: "Mortgage lending by the high street banks is continuing to improve from the lows seen earlier this year and the number of house purchase approvals continues to recover. Housing market activity will depend, however, on more properties coming on to the market. Apart from property decisions, further symptoms of subdued consumer confidence are a reduced appetite for unsecured borrowing and more saving.

"Lending to companies continues to be affected by current trading conditions. In perhaps the hardest-hit sectors, related to commercial property and construction, lending levels continue to fall and company borrowing in general remains subdued."