Mortgage approvals reach 19-month low

Mortgage approvals reached a 19-month low in October, according to latest figures.

Data from the British Bankers' Association BBA has highlighted that just 30,766 approvals for home loans were granted across the month, down from 31,058 in September and marking the lowest level since March 2009, at the peak of the recession.

Net mortgage lending rose by £1.7 billion month-on-month, compared to £3 billion in October 2009.

BBA statistics director, David Dooks said: "Activity in the mortgage and consumer credit markets continued to be subdued in October, reflecting uncertain prospects for households and lower consumer confidence."

The figures also showed that the average value of house purchase approvals rose over October, reaching £144,900, two per cent higher than last year.

Figures from the Council of Mortgage Lenders also highlighted uncertainty within the mortgage market, with gross mortgage lending dropping nine per cent from £13.6 billion in October 2009 to £12.4 billion.

This is the lowest October total since 2000.
 

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2010-11-26 07:43:42 © Moneyextra.com