The amount of mortgage approvals in Jan this year rose from around 38,000 to 39,230 which is a 4% rise on the previous month and according to the figures released by the Bank of England, the rise in mortgage approvals might continue going up.
The sum of all the mortgages approved by the banks in Jan came to £4.6 billion which is a £900 million increase from the previous month, although this increase of £900 million is not as large as the 6 month average increase of £1.6 billion, it didn’t even manage to reach the February increase of £1.5 billion, however, the total amount of money that was approved in mortgages in Jan, £4.6 billion, was well over the estimated monthly average.
There was also some encourgaging news from the building societies, the overall amount of mortgages that had been approved in Jan rose to £1,542 million which is double the amount approved in the previous month.
And finally, new figures released by the British Bankers Association regarding lending rates to small businesses. Their figures showed that lending to small businesses had risen by £271 million in Jan this year.This has had a knock on effect of reducing small business insurance premiums for many companies. However, the news releaased by the Treasury Committee say that small businesses are finding it even harder to borrow money that they need.
Although these figures sound good, mortgage approvals don’t really affect us now, it’s mortgage lending that’s more important and the actual mortgage lending in Jan rose by £800m which is alot less than the monthly average of £1.2 billion.
Although of the above figures are good news for the economy, there are still concerns that house prices could slump again and take us back to the beginning, however, even if they house prices continue to rise, the economy is still is a delicate state.
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