Rises in mortgage approvals "very likely", expert says

Date:Tuesday 9th June 2009
Author: Max Freedman

It is highly probable that the UK will see a further increase in mortgage approvals next month.

This is the claim of Sue Anderson, head of member and external relations at the Council of Mortgage Lenders, who said it is "very likely" that approvals next month will show their first year-on-year rise on a monthly basis since early 2007.

The expert made her prediction following the release of figures from the Bank of England which showed that the number of new approvals for home loans had increased for the third consecutive month in April.

During the 30-day period, a total of 43,201 mortgage applications were given the go-ahead.

This compared with 40,038 in March and 38,183 in February.

However, Ms Anderson pointed out that transaction levels remain "extremely low" when examined in an historical context.

She added: "Lending is still constrained and consumer appetite is still somewhat constrained in anticipation of bigger rises in unemployment and other problems in the wider economy."