Mortgage approvals hit 20 month-high in August

Date:

Thursday 29th September 2011

The latest figures released by the Bank of England offers much hope that mortgage lending conditions are easing, allowing more people to realise their dream of buying a new home.

The data shows that 52,410 mortgages were approved for homebuyers in August - the highest level since December 2009.

Stringent mortgage lending conditions, following the recent credit crisis, have been one of the biggest obstacles preventing many would-be purchasers from buying a new home, but the figures suggest that things could be improving, and could even leader to greater sales in the coming months.

David Whittaker, managing director of Mortgages For Business, said: "The late summer heat-wave has brought good news for the lending market and whilst buy-to-let lending to individuals has been lumped in with the total figures, we all know that it's most likely the professional investors who are making hay while the sun shines."

He added: "The likelihood is that the lending market is being propped up by the residential investment sector particularly with so much uncertainty surrounding the economy and first time buyers largely locked out the of market. The UK's heat-wave might not last much longer, but landlords will be enjoying their Indian summer for a while yet."