Mortgage approvals rise slightly

The number of mortgage approvals for home purchase in March rose by five per cent compared to the previous month, according to figures from the British Bankers' Association BBA.

In total, 34,095 home loans were approved over the course of the month, with the BBA suggesting that low interest rates were prompting people to take out mortgages.

However, gross mortgage lending for the month stood at £8.7 billion, which was less than the average amount borrowed in the previous six months.

According to the BBA, many mortgage lenders are currently encouraging people to reduce their debt levels by overpaying on their mortgage.

"Homeowners are reducing mortgage debt by making, or maintaining, higher repayments using the extra cash generated by lower mortgage rates," said David Dooks, the BBA's statistics director.

Last week, Jon Brown, partner relationship manager at iammoving.com, said that people's confidence in the property market is steadily being restored and an increasing number are looking to buy their own home.

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2010-04-27 08:14:42 © Moneyextra.com