October mortgage approvals double previous year's figures
Mortgage approvals in the UK almost doubled last month compared to results from a year earlier, according to the British Bankers Association (BBA).
Over 42,000 home purchase loans were approved in October, an increase of 97.7% on the previous year. The figure was also an improvement on the average of the past 6 months which was 37,705.
The increasing availability of credit could be a contributor to the predictions of an overall recovery in the market which have been appearing recently.
House prices are expected to rise by 5% next year and major firms are recording increased activity. However the BBA said buyers are still exercising caution.
David Dooks, BBA statistics director, said: "The banks' mortgage lending, still growing by more than 4% a year, shows one aspect of consumer behaviour but unsecured borrowing is subdued and people are building up deposits."
The average amount of money lent was £142,000. The current stamp duty holiday provides an exemption for properties priced between £125,000 and £175,000. Experts are recommending that buyers move now and take advantage of the tax break before December 31st 2009.
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