Mortgage approvals rise to a 2 year high

Mortgage approvals are at their highest level in almost two years report the Bank of England in its Lending to Individuals, November 2011 report.

Also up is the total lending to individuals which rose by £1.0 billion in November, which was in line with the previous six month average. The twelve month growth rate was reported as unchanged at 0.9 per cent. Lending secured on dwellings rose by £0.6 billion, less than the previous six month average of £0.7 billion. Gross mortgage lending secured on dwellings was £12.6 billion in November, which was higher than the previous six-month average of £11.7 billion. Repayments in November were £11.6 billion, higher than the previous six-month average of £11.2 billion.

The number of loan approvals for house purchases in November, was higher than the previous six-month average however, the number of approvals for remortgaging decreased in November, and was lower than the previous six-month average. Looking forward into 2012 it will be about matching willing borrowers with reluctant mortgage lenders.

Mortgage experts advise that the problem is borrowers are hesitant to borrow and lenders aren't overly keen to lend, a problem that gets worse at higher LTVs. For 2012, the housing market is expected to come under a little more pressure and as lending criteria tightens up the number of mortgage approvals may well start to slide.