More mortgages set to be approved

Posted: 03 Jun 2009 10:20:22 GMT

An increasing number of mortgages will be approved for the British public as the year draws on, according to the Council of Mortgage Lenders (CML).

In a statement released by the organisation in the wake of the Bank of England's latest mortgage approval figures, the CML predicted "modest rises" in the number of home loans being granted in the coming months.

This comes after the Bank said 43,200 mortgages were endorsed in May - the highest level since April last year when the figure was around 55,000.

However, the CML was cautious about the situation and advised the industry not to assume a complete turnaround in the sector's fortunes had occurred.

"Limited lending capacity and the impact of further job losses are likely to act as a ceiling for how far the improvement can continue," it said.

The marketing director for property website Fish4homes, Lisa Walker, recently claimed that the current low interest rate is ensuring people are not forced into selling their homes quickly.

She compared to the situation to the early 1990s when a spiralling base rate, combined with a period of recession, meant many people had no choice but to sell their properties.


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