Homebuyer mortgages have reached a two-year high

By Leah Simpson
Posted: 2009/11/24

HOMEBUYER mortgages have reached a two-year high, according to figures released today.

This October may have marked a promising era for the housing market - around 42,238 loans were agreed for Brits hoping to invest in new homes.

The fresh figures - released by the British Bankers' Association - shows that numbers have doubled since this time last year and are at the highest level since January 2008.

Net lending - which disregards redemptions and repayments - remained at £3.1 billion.

However, unsecured lending stayed downcast as consumers instead concentrated on clearing their debts and increasing savings.

David Dooks, BBA statistics director, said: "The longer it takes to emerge from recession, the longer we will see households and businesses continue to borrow with caution.

"The banks' mortgage lending, still growing by more than 4 per cent a year, shows one aspect of consumer behaviour but unsecured borrowing is subdued and people are building up deposits."
 
Remortgaging levels also remained subdued during the month, as low interest rates mean many people are better off staying on their lender's standard variable rate when their current deal comes to an end.

Only 20,685 loans were approved for people switching to a new deal, the lowest figure since November 1999, and only a mere third of the level seen during October last year.