September lending figures “twice those expected”

September lending figures “twice those expected”


Mortgage lending figures for September were twice what experts expected, and demonstrated a slight improvement from August, according to the latest data.

Unfortunately, the mortgage market – and a wealth of anxious brokers – are not out of the woods just yet. The increase is still two thirds less than it was this time last year.

Home loans approved for the month of September rose from 32,000 to 33,000 which is slightly higher than predicted, but is still a worryingly low figure.

The improvement is unlikely to affect the anticipated interest rate cut next month, after this month’s cut to 4.5 percent. Experts are now waiting to see how October’s massive bank bailout will affect the number of mortgages granted, if it does at all.

Despite the bleak outlook, it is hoped that the injection of cash will enable banks to reintroduce good deals for home buyers, and subsequently breathe some life into the stagnant housing market.

By Danielle Williams

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