4% Rise for Jan Mortgage Approvals

The amount of mortgage approvals in Jan this year has risen by 4% to 39,230 and according to the figures released by the Bank of England, the rise in mortgage approvals might continue going up.
The total cost of all the mortgages approved by the banks in Jan came to £4.6 billion which is a increase of £900 million from February, however, this increase of £900m is not as large as the monthly average of £1.6 billion or even as large as the February increase of £1.5 billion, however, the total amount of money that was approved in mortgages in Jan, £4.6 billion, was well over the monthly average.

There was also some encouraging news from the building societies, the amount of mortgages that have been approved in Jan has risen to £1,542 million compared to the amount in February of £742 million.

Finally, there have also been figures released by the British Bankers Association regarding lending rates to small businesses. They said that their figures showed that lending to small businesses had risen by £271 million in Jan.This has had a knock on effect of reducing small business insurance premiums for many companies. However, the news releaased by the Treasury Committee say that small businesses are finding it even harder to borrow money that they need.

Although these figures may sound good, mortgage approvals in forward thinking and it’s mortgage lending that we should be looking at, the actual mortgage lending in Jan rose by £800 million which is not as much as anticipated and a lot less than the monthly average of £1.2 billion.

Although of the above figures are good news for the economy, there are still concerns that house prices could slump again and take us back to the beginning, however, even if they house prices continue to rise, the economy is still is a delicate state.

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