UK's mortgage market is improving, expert says

Date:Friday 3rd April 2009
Author: Susanna Kavka

There are signs that the UK's mortgage market is improving, according to one industry practitioner.

Charles Davis, senior economist at the Centre for Economics and Business Research, stated that there are "tentative" indications that the recent reductions in the UK's base rate of interest are having a positive impact.

He made his comments in response to recent Bank of England figures, which revealed that mortgage approvals rose by 19 per cent in February this year compared with the previous month.

The Bank announced that 37,937 mortgages were approved in February 2009, whereas 31,791 were approved in January.

Mr Davis described the percentage change as "quite large".

The expert added: "[The figure] also comes at a time when we have seen some pick up in interest and enquiries in the housing market."

However, he went on to state that the mortgage market is still at a "relatively low level" compared with the months which immediately preceded the credit crunch.