British banks approved more mortgages in January than any other month since September 2007.
New data from the British Bankers’ Association (BBA) said mortgages for home purchases reached 49,972 in January, nearly 3,000 more than December’s total of 47,086, according to Reuters.
“Following on from last month, mortgage borrowing continues to rise compared to a year earlier as mortgage assistance schemes help first-time buyers and housing chains more generally,” BBA Director of Statistics David Dooks said about the data.
Such statistics are expected to fuel concerns that a housing bubble is set to occur.
The number of mortgages has surged by 57 per cent from one year ago. However, recent figures have not reached the heights of more than 70,000 from late 2006, before the financial crisis happened.
Net mortgage lending rose by nearly £398 million in January, compared with £389 million in December.
The Bank of England has previously stated that if the housing market needs to be reined in, it has other tools at its disposal apart from interest rates.
