Mortgage approvals 'on the increase'

Date:Monday 4th January 2010
Author: Susanna Kavka

The number of mortgages approved by the Bank of England increased throughout 2009, producing similar figures to those of the Royal Institution of Chartered Surveyors (Rics).

Rics senior economist Oliver Gilmartin said that mortgage approvals have been rising for the last year, especially for borrowers looking to take out loan to values of 75 per cent and above in the fourth quarter.

However, he warned that the newly-seen buoyancy in the market is likely to bring about an increase in interest rates.

If the Bank of England base rate increases in the second half of 2010, as has been predicted, it will eventually mean a rise in mortgage rates.

In December, Rics also commented that even though more properties were starting to come onto the market, house prices were starting to increase.

Demand was still outstripping supply, however, with 28 per cent of estate agents reporting that they were receiving more enquiries than they had properties to satisfy.