If you are currently looking for a home, you should be feeling positive.
The latest figures from the British Bankers’ Association (BBA) point to a 40% uplift in mortgage approvals in the 12 months to September, property search website Zoopla revealed.
The number of approvals for home purchases has now touched its highest level since December 2009, with around a quarter of the increase seen in the last 12 months being secured in September alone.
In September, British banks approved 42,990 mortgages, against 38,834 in the previous month. But the figure is still below the average of 54,006 during 1997-2003, Howard Archer, economist at HIS Global Insight, said, as quoted by the Telegraph.
The solid increase in mortgage loan approvals also suggests that low interest rates and government schemes aimed at making it easier to get on to, or move up, the housing ladder might be starting to give new life to the market. But still, homeowners appear to be wary of taking the plunge following years of economic uncertainty. While confidence in the housing market is on the rise, homeowners are still not ready to take on more borrowing due to persisting concerns with regards to the economy and the labour market, Mark Harris, head of SPF Private Clients, commented. Borrowers still tend to overpay on their mortgages, making use of the low interest rates and covering debt where possible, he said.
Are you feeling optimistic about the current mortgage approval boom?