Number of home loans on the increase
The number of home loans taken out in June jumped by 23 per cent in June, a further sign that the housing market is beginning to stabilise.
New figures released by the Council of Mortgage Lenders (CML) show that around 45,000 loans were approved for home purchases, with June being the fifth month where an increase has been shown and is at the highest level for 2009.
There was also a steep increase in mortgages taken out by first time buyers, which is 26 per cent more than those granted in May. Ashley Brown of the mortgage broker, Moneysprite advised this is a good sign for the market, “If first-time buyers are coming back to the market, the market can move”
In addition to this, new surveyor figures also suggest a 2.6 per cent increase in property prices during the second quarter of 2009.
Despite the promising figures the CML has warned that when compared historically, there is still room for growth. The number of new borrowers was down by 7 per cent when compared to June 2008 and the value of loans fell from 87 per cent to 75 per cent in 2009.
“Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.”
The number of loans used to remortgage properties also increased by 13 per cent from May, but the CML warned that lower interest rates were having a dampening effect on the need to remortgage.
The CML group also advised that there were “tentative” signs that the conditions imposed on lending criteria have been relaxed since the beginning of the economic crisis.
Similar Posts:
- UK repossessions fall by 10% during second quarter
- Number of home loans ‘fell sharply’ in January due to stamp duty hangover
- Figures reveal customer banking complaints are highest on the high street
- 9000 calls a day for debt advice
- Consumer confidence at highest level for 18 months
Latest comments