Rise in Mortgage Approvals
New mortgages show first annual increase in more than a year
28th September 2005
New figures from the British Bankers' Association (BBA) showed the first annual increase in home loans for over a year, suggesting that the housing market may be recovering after recent faltering.
A total of 69,500 new mortgages were approved last months, compared to 65,600 in July. The figure shows an 8.5% increase compared to last August.
Analysts said that even after adjusting the figures to take account fluctuations through the year, a clear 'spike' could be seen which was probably a reaction to the Bank of England cutting rates for the first time in 2 years.
Commentators are divided as to whether this increase is a one-off reaction to the rate cut, or a sign that property price inflation may be about to kick in again.
Read More: The Guardian : Rate cut prompts increase in mortgage approvals
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