Home loan approvals soar

The Bank of England (BoE) has announced that the number of loan approvals for home purchases have risen sharply following the August interest rate cut of 0.25 per cent.

BoE figures indicate that total net lending to individuals in August was £8.9 billion, £8,000 higher than July.

Unsecured lending rose by £1.265 billion. BoE asserts that the increase in net lending was expected, and formed part of a six-month trend of steady increases.

Loans for home approvals rose dramatically from 99,000 in July to 107,000 in August, which is line with figures released by Nationwide indicating a stable housing market.

The Nationwide report indicates that house prices fell by 0.2 per cent in September, but this has translated into more house purchases and subsequently more loan approvals for this purpose.

Analysts are speculating over the possibility of further rate cuts given news from the Confederation of British Industry that September retail sales volumes are the lowest for 22 years.

© Adfero Ltd

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