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Home Buyers Defy Seasonal Dip In Housing Market As New Home Loans Jump 81pc

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http://www.telegraph.co.uk/finance/persona...-jump-81pc.html

A total of 38,000 loans for house purchase were approved in August, up 81 per cent compared with a year ago, according to the British Bankers’ Association.

The sharp rise comes on the back of significantly low levels of lending last year during the banking crisis.

Both approvals for house purchases and remortgages in August dipped slighted compared with the previous month.

The number of remortgages approved was also down almost 50 per cent compared with a year ago as home owners slipped automatically onto their lenders’ cheaper standard variable rate rather than take out a new deal.

The BBA also said net lending – which strips out redemptions and repayments – rose to £2.8 billion, up 4.6 per cent in the past year.

David Dooks, BBA statistics director, said: “Loans approved for house purchase have recovered to early-2008 levels, but low levels of customer demand and a limited number of properties coming onto the market will continue to moderate lending.â€

Mortgage experts said the lack of affordable mortgages will continue to be a problem for first-time buyers, particularly those with a small deposit.

Andrew Montlake, director, independent mortgage broker, Coreco, said: "It is likely to be a long, slow recovery due to a lack of readily available housing stock and mortgage lenders' continuing insistence on borrowers with high deposits or significant equity.

“First time buyers and borrowers with small deposits are still finding it very difficult to secure mortgage finance.â€

Headline of the day.

It's all down to the jobless recovery.

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http://www.timesonline.co.uk/tol/money/pro...icle6845627.ece

The number of mortgage approvals in August rose 81.4 per cent from the previous year to levels not seen since before the worst of the credit crisis, the British Bankers' Association (BBA) said today.

Even though August's number dipped slightly from the figure reported in July, after seven successive monthly increases, the BBA was keen to emphasise that the more important trend was steady growth, with mortgage lending returning to levels last seen in early 2008.

The BBA said that 38,186 mortgages were approved in August, only 100 fewer than in July, which was a 17-month high.

The total net amount of mortgages advanced by the high street banks in August was £2.8 billion, against £1.9 billion in July, representing annual growth of just 4.6 per cent against a year ago. The figure strips out redemptions and repayments.

The amount placed in personal deposit accounts rose even further, up by £3.3 billion, beating an average rise of £1.5 billion over the past six months. Meanwhile consumers cut back on credit card spending, with £5.6 billion spent in August, a 13.6 per cent fall from a year ago. The BBA said demand for personal loans was weak with balances having fallen £1.9 billion in the first eight months of this year.

The times take on it.

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