Figures show a return in mortgage lending

Today the Bank of England confirmed that December 2008 saw mortgage lending up by around 56% from November.

While net lending was reported to be £834 million in November, this figure had risen to £1.9 billion the following month.

Mortgage approvals were also found to be elevated, with 4,000 more granted for home purchases in December, taking the figure to 31,000.

During the final quarter of 2008, those people who already had loans benefited from large interest rate cuts. This may be the reason behind the Bank of England’s figures which showed that the number of remortgages fell in December.

The Bank confirmed that 5,000 fewer loans were approved for borrowers looking to change their mortgage provider between November and December, and down by approximately 45.5% on the previous six-month average.

Source: guardian.co.uk | Last updated: 30th January 2009

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