Funding for Lending – Mortgage Approvals on the Rise
There is a positive outlook with regards to the housing market, as British mortgage approvals hit a record high since January, according to figures released by the Bank of England (BoE).
October saw a total of 52,982 mortgages approved for house purchases, a rise from the 50,415 approved in September. This beat the forecasts set by economists who settled on a figure of 51,500 when making projections for October.
It is difficult to determine what this rise should be attributed to, but it seems likely that the Funding for Lending scheme set up earlier in the year by the government will have helped to some degree.
Annalisia Piazza, strategy analyst at Newedge, said: “Mortgage activity seems to have improved a touch in the past few weeks, partially boosted by BoE’s Funding for Lending programme. That said, the level of activity would remain consistent with a relatively sluggish housing market in the coming months”.
The Funding for Lending scheme was introduced as a method of passing low interest rates through the bank to small businesses, as well as consumers looking to invest in property. The BoE would supply these low interest rates to the high street banks, which would then pass them on to their customers, provided it was then invested in the UK economy.
Share this..
Related stories
When did you last review your mortgage?
UK mortgage rates are currently as low as they have been for many years but many people in the UK may well be missing the opportunity to reduce their mortgage payments by neglecting to review their financial arrangements on a regular basis. While there may well be potential penalty payments for some people to consider when transferring their mortgage arrangements, there is a need to look longer-te...
Read MoreMortgage 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, whi...
Nationwide brings back the 95% mortgage
The Nationwide building society has put itself in the firing line of regulators and the government after announcing the reintroduction of mortgages worth up to 95% of a property's value. However, those looking for a 95% mortgage will certainly pay the price with a rate of 7.18% quoted against UK base rates of just 2%. The rate does decrease depending upon the amount of funding which buys are able...
Read MoreRemortgage Applications Rise Dramatically
Applications for remortgage loans have rocketed in the last year, new figures have revealed. Data compiled by the Mortgage Advice Bureau (MAB) show that the number of remortgage loans taken out over the past year has increased by a whopping 27 per cent. Interestingly, and maybe not surprisingly considering the credit crunch, home buyer mortgages have fallen by almost exactly the same volume dur...
Read MoreFirst Direct launches new mortgage Tracker
First Direct has launched one of the most competitive lifetime mortgage Trackers seen in the UK with an initial charge of 2.58%, i.e. 2.08% above base rate. While the setup fee for this particular mortgage arrangement is £999 and requires a 35% deposit there are very few restraints along the way. There are no early repayment charges, which will allow customers to leave the arrangement if rates ri...
Read More