UK High Street banks have revealed that there is an upward trend developing in the number of mortgages that get approved.
The British Banking Association has stated that over 1,000 more requests for mortgages were approved in March this year than in the previous month.
This represents a higher number than in the previous six months. However, this is still around 15% lower than it was this time last year.
One of the reasons that is being offered as an explanation for this trend is the fact that many low mortgage rates are now on the market.
Many leading banks have continued to lower their rates due to the fact that the Bank of England now looks unlikely to raise interest rates until sometime in 2016.
Interest rates of less than 2% are now being offered on fixed rate plans that last 5 years.
Howard Archer of IHS Global Insight stated:
“The third successive modest rise in mortgage approvals ties in with our belief that housing market activity is now gradually turning around,”
According to the BBA, consumers are also taking out other forms of credit such as overdrafts or loans.
Borrowing has increased by around £400m in March compared to the month before.
This is thought to represent a rise in confidence of the consumers.
The CML (Council of Mortgage Lenders) supports the findings of the BBA and has stated that they have seen a trend of increased lending.
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