February figures show rise in mortgage approvals for third consecutive month

The latest statistics from the British Bankers' Association (BBA) have revealed an increase in the number of mortgage approvals last month - the third month in a row where a rise has been recorded.

While January saw 24,278 mortgages approved, 3,901 more were approved in February, taking the new mortgage approval figure to 28,179 – well above the six month average of 22,068.

The BBA's statistics also found that the main high street banks' mortgage lending trend was stronger in February, with a net rise of £3.9 billion, compared to a net rise of £3.4 billion in January, and a six month average of £3.3 billion.

The recent figures come after the government urged banks to increase their lending in a bid to aid the housing market. Royal Bank of Scotland (RBS) has said that it would lend an additional £25 billion, while Lloyds TSB has pledged to lend an extra £14 billion in 2009.

Meanwhile, remortgaging approvals were shown to have fallen slightly as borrowers reverted to standard variable rates instead of moving to new fixed rate products.

Source: Times Online and the British Bankers' Association (BBA) | Last updated: 24th March 2009

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