July saw 37,200 mortgage approvals with a value of £5.7 billion, according to the British Bankers’ Association.
This figure equates to a 31 per cent uplift in approvals compared to the same month last year, while re-mortgages increased by 40 per cent year-on-year.
July’s approval rate as just slightly lower than June’s 37,337 – itself a 17-month high.
The British Bankers’ Association said the mortgage market’s improvement at the beginning of the year has continued into the summer months.
Despite the uplift, however, overall mortgage activity is still “subdued”, due to high mortgage repayments on loans – according to the BBA.
The Government’s Funding for Lending scheme and other initiatives have made funding more easy to obtain, while low savings rates have encouraged those with extra cash to pay down their mortgages, in preference to seeing their savings depreciate.
According to David Dooks, BBA’s statistics director: “Mortgage activity has strengthened during 2013 with the help of Government schemes. But high ¬repayments and redemptions mean that we are not seeing increases in net mortgage borrowing for the high street banks.”
Experts point out that even though there has been an encouraging increase in activity across the housing market, property sales are still much lower than the peak of the ‘boom years’.
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