The number of buyers who had a new mortgage approved in May reached its highest level for 14 months, the British Bankers’ Association (BBA) has announced.
With almost 73,000 approved, mortgage approvals have not been this high since March 2014. Not only has the number of mortgages approved risen, the loan amount approved to purchase a house with has risen to £170,000, compared to two years ago when it was £159,000.
“The increase in mortgage approvals this month is consistent with the trend we’ve seen since the start of the year. The numbers show that the property market remains buoyant after the general election,” said Richard Woolhouse of the BBA.
However, house prices are expected to rise though, as a shortage of properties pushes prices up, Howard Archer of IHS Global Insight said. Although, it was highlighted that there are more people interested in buying a house, and he also expected the number of mortgages approved to continue rising.
There has been a significant increase in the number of personal loans taken out during the last year, which has been highlighted as helping lead to the surge in unsecured borrowing.
Last December, mortgage approvals reached a 20-month low, with approximately 60,000 approved.
