| CATEGORY: NEWS AND ANNOUNCEMENTS |
Mortgage approvals leap ahead of rate decision |
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Mon 30 Apr 2007
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LONDON (SHARECAST) - UK mortgage approvals jumped to their highest in four months in March as homebuyers raced to snap up the best deals before the expected interest rate hike to 5.5% next month.
Approvals for new house purchases came in at 75,098 last month, far surpassing February’s 54,659, according to data from the British Bankers Association out Monday.
But the figure was still well below the equivalent month in 2006 when approvals topped 85,000, suggesting the three rate rises since last August are beginning to bite.
Meanwhile, gross mortgage lending of £18.634bn beat the previous month’s £14.949bn and the year ago figure of £17.673bn.
"Strong levels of gross mortgage lending reflect homebuyers and homeowners seeking out fixed-rate mortgages as protection against rising interest rates," said BBA director of statistics David Dooks.
But he added, "In the last two months net lending has risen less sharply and, compared to the same time last year, the number of mortgages approved in March was lower, indicating that weaker demand is starting to emerge.”
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