Mortgage lending increases in January

24-Feb-2009

The damaging impact of the economic downturn on the mortgage market has been much documented, but new figures from the British Bankers' Association (BBA) today showed that loan approvals for homebuyers increased for the third consecutive month in January.

Some four per cent more loans were approved in January - the total being 23,376 compared to 22,416 in the previous month.

The improvement is indicative of recent reports that more first-time buyers (FTBs) are entering the property market after recent house price falls and interest rate cuts by the Bank of England.

David Dooks, statistics director at the BBA, commented: "Lower borrowing costs and falling property prices have underpinned demand at high street lenders, who are providing over two-thirds of all new mortgage lending."

His comments come after research by financial advice website Unbiased.co.uk last week showed that many Britons have an exaggerated understanding of how difficult it is to secure mortgage finance in the current economic climate.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

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