The recent BBA’s high street banking stats point to growing consumer confidence, with mortgage approvals now at their highest levels for six and a half years.
BBA statistics director, David Dooks said:
“Following on from last month, mortgage borrowing continues to rise compared to a year earlier as mortgage assistance schemes help first time buyers and housing chains more generally. Approvals for new purchases have climbed quite significantly and are now at their highest point since September 2007.
“Credit card spending is also on the rise, showing that consumer confidence in the economy continues to improve.”
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, commented: “The property market is continuing to drive on ahead, with mortgage lending up significantly from a year ago. Powered by Government schemes such as Help to Buy, mortgage availability for many is better than it has been in years. Growing confidence in the economy has inevitably made banks and buyers more optimistic, which in turn is spurring demand for property at all levels. “Lenders in particular have come a long way – in a relatively short space of time – with far more willing to support a range of borrowers, including those at the bottom who have been longing to get on the ladder. The influx of first-time buyers has boosted competition and helped promote growth across the market. “However, it’s not all wine and roses yet. The Government still faces a major problem with a lack of new build housing which could put a brake on the positive rate of recovery. With rising demand likely to outstrip supply, it’s essential the government addresses this head on to ensure a sustainable rate of recovery for the long haul.”
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