Banks are loosening up again on mortgage lending for first time buyers on the high street, according to new figures just released.
The British Banker’s Association (BBA), which monitors the mortgage lending activity of all the main high street banks, has revealed that latest mortgage lending statistics for October show that the number of new mortgages approved almost doubled compared to the (admittedly stagnant) levels of the previous-year period.
October 2009 saw the main banks approve 42,238 home loans, up 97.7% on the previous October. The average value of the mortgages approved was £142,000.
It was a very different story in the remortgaging market, however, with 20,685 remortgages approved in October 2009, down 61.8% on the previous year.
Net mortgage lending was up 4.6% in October from the previous year, rising by £3.1bn, the same as in September.
The figures are in harmony with other surveys which indicate that the UK’s all-time-low interest rates are effectively stabilising the housing market, and favouring first time buyers, following the sharp declines that were noted in 2008.
Looking at the markets for bank loans and unsecured lending, the BBA noted that unsecured borrowing is still subdued but that savings with banks were up 4.5% in October over the previous year, indicating that consumers continue to exercise caution and build up deposits.
