Mortgage lending shows new increase

The number of mortgages being lent in the UK has risen again, the Bank of England has revealed.

Official data from the institution has shown that there were 50,123 mortgages agreed for the purpose of buying a home last month, up from June’s total of 47,891 and May’s tally of 44,234.

Remortgaging crept up slightly from 35,137 in June to 35,206.

Such figures are “testament to the continuing recovery in the housing market”, said Royal Institution of Chartered Surveyors’ chief economist Simon Rubinsohn.

However, he suggested, the increase in the supply of mortgages may be limited by the fact that a number of those firms who provided them before the credit crunch have withdrawn from the marketplace.

The economist also suggested that the fall in net lending indicated that institutions are still “a little hesitant” to offer more money.

Mr Rubinsohn went on to predict that the monthly total of loans for home purchase will rise to between 55,000 and 60,000 by the end of this year.

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