Mortgage approvals hits highest level since May

The number of mortgage approvals in November grew by 3.5 per cent to the highest level since May 2010, according to data from e.surv chartered surveyors.

Lenders approved 48,846 mortgages in November, compared to 47,185 in October, which is the first month-on-month increase since April.

Richard Sexton, business development director of e.surv, said: "November was a rare bright spot for the mortgage market."

He added that there were a number of attractive mortgage rates available during November which stimulated demand from borrowers, both to buy homes and remortgage.

Figures from e.surv also show that the average loan-to-value rose to 57.7 per cent in November, the first increase since June.

Mr Sexton said that lenders have begun to loosen their credit conditions and expand the loan to value ratios for the full range of customers.

With the mortgage and housing market about to hit the traditionally slow month of December many experts are claiming that January will be the "month to watch", to determine if the markets have improved significantly.
 

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2010-12-06 11:53:00 © Moneyextra.com