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'Early days' for home loans recovery

26 Jun 2009

Borrowers have been reminded that it is still "very early days" for home loans recovery. Peter Cowell, a broker for Click n go Mortgages, was responding to figures from the British Bankers Association (BBA) which showed a 7.4 per cent upward shift in approvals for new home purchase loans in May.

While he acknowledged this may be a sign of increased confidence, he added that it would be a "slow and steady process" to full recovery.

Mr Cowell also pointed out that lenders do not wish to offer vast loans, with most remortgages being 75 to 85 per cent, excluding many borrowers.

According to the BBA's figures, there were 31,162 mortgages approved in May. This was a 15.8 per cent rise on the same month last year, with the average value of an approved mortgage standing at £133,600.

Gross mortgage lending was £10.3 billion in May, according to the Council of Mortgage Lenders, down two per cent from April's figure of £10.5 billion.

Written By: Mark Wharton

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