New home loans stuck at low level - Mortgages, Money - The Independent

New home loans stuck at low level - Mortgages, Money - The Independent

The number of mortgages approved for house purchase remained close to a two-year low in January as activity in the property market remained subdued.


Just 28,932 loans were approved for people buying a property during the month, broadly unchanged from December's figure, which was the lowest since January 2009, according to the British Bankers' Association.

But there was a 5% jump in the number of people remortgaging, as homeowners opted for fixed-rate deals as speculation increased that the Bank of England would raise interest rates sooner than previously thought.

A total of 28,907 remortgage loans were approved during January, 28% more than a year ago, and only slightly down on November's figure, which was a 16-month high.

Net mortgage lending, which strips out redemptions and repayments, rose to £1.6 billion, 75% above December's figure and the highest level since August last year.

But the increase is likely to in part reflect the severe winter weather seen during December, as well as the festive season, both of which contributed to people delaying buying a home.