Mortgage approvals up but first time buyers still struggling

27-Jun-2007

Mortgage demand rose to its highest level since the turn of the year in May, new figures have revealed, but first time buyers are likely still struggling despite more competitive deals being offered by banks.

The British Bankers' Association (BBA) has reported that 77,443 mortgages were taken out in May in comparison to 64, 815 in April, but advised that this was likely down to better deals being offered by banks in comparison to building societies and other lenders.

Problems in the housing market were emphasised by an increase in remortgages, up to 77,584 from an April figure of 60,476.

"Because of strong approvals in May, the banks' higher market share is likely to continue over the next couple of months," advised BBA director of statistics David Dooks.

Others saw the figures as being more indicative of wider trends.

"The latest lending figures confirm MPC concerns that the housing market has been resilient in 2007 making a further rate hike guaranteed in July," commented Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors.

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