Mortgage approvals on the up
The British Bankers Association has revealed impressive figures that show UK mortgage approvals have hit a 15 month high and show a 65% increase on the figures from June 2008. A total of 35,235 mortgages were approved in UK in the month of June which compares favourably with the 31,919 approved in May and the recent low of 17,953 which was reached in November last year.
However, while the number of mortgages approved has increased dramatically over the last six months the average value of the mortgages in question has fallen by 11%. The 11% fall reflects both the fall in property prices as a whole over the last 18 months as well as a tightening of mortgage criteria by mortgage lenders in the UK who are cutting back their risk profiles. The longer this trend continues the more upbeat investor will become about the UK property market which will eventually drag the UK economy out of the doldrums.
We now need to see a few months of upward trending by various economic indicators in order to finally confirm that the UK economy has turned and is indeed on the way up. At this moment in time we appear to get one positive report closely followed by two downbeat or mildly upbeat surveys. Would you bank on a recovery being around the corner?
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