BoE: Lending increases in October
This compares with 106,486 loans in September at a value of £12.3bn. The number of loans for house purchases in October also increased – by 3% to 52,743 – from September with the amount of lending for house purchases also going up by £0.1bn to £7.3bn.
The number of remortgage loans decreased by 330 to 34,666 over the same period with the value of lending remaining at £4.5bn.
Other loans secured on dwellings increased in volume by 366 to 20,662 but remained at £0.6bn.
Total lending to individuals rose by £1.3bn in October, greater than the previous six-month average increase of £1.0bn.
Suzanne Bradshaw, director of Derby-based Mortgage Arena, said: “Mortgage approvals for house purchases are up slightly but then there’s nothing in these figures to suggest the market is anything other than flat.
“But let’s not knock flat. Flat is not so bad given the febrile state of the economy.
“There is life in the market even if the levels of old aren’t there. We’re seeing some innovative products and increased activity among the lenders at higher loan to values.
“We are seeing increased enquiries from first-time buyers, as falling house prices and rising LTVs bring home ownership within reach of more people.
“The remortgage side of the market is faring well given some of the attractive rates out there at the moment.
“People are fairly confident rates will stay on hold for some time yet but then they also know that some of the fixed rate products currently available may not be around for long.
“And they are right, as witnessed by the edging up in standard variable rates. The window is closing as lenders price in the increased risk drifting in from across the Channel.”