Home Loans At Highest Level Since January 2008
The latest Mortgage Monitor from e.surv has shown that 71,920 home loans were advanced in November.
This was the first time since January 2008 that the figure went above 70,000 and represented a 6% increase from October and a 34% increase year-on-year.
13% of all house purchase approvals were to high LTV borrowers, with 9,493 high LTV loans in November, almost double the 4,872 advanced in November 2012.
This was the highest number of LTV loans advanced in a single month since April 2008.
The increase in approvals follows the release of new data from the Bank of England showing that net lending through the Funding for Lending Scheme tripled in the third quarter of this year.
Net lending by banks using the scheme climbed to £5.8 billion between July and September, compared to just £1.6 billion between April and June.
Richard Sexton, director, e.surv chartered surveyors, said: “The mortgage market is making definite strides back to its pre-crisis health.
“Between the tail-end of the summer and this autumn, lenders tapped the Funding for Lending Scheme for almost £6 billion worth of funds, and that honeypot is now filtering through to homeowners, in the form of more loans and cheaper rates.
“Despite the changes to FLS, the mortgage market will continue to thrive. Funding for Lending spurred a limping market into action at the beginning this year, but since then Help to Buy has taken the lead in driving the market forwards.”