According to figures released by the British Bankers’ Association (BBA), 42,116 mortgages were approved for home purchases in April, up from the 39,203 approved in March, which is the highest number recorded since June last year.
Mortgages worth a total value of £7 billion were approved by lenders last month, following reports that there has also been a significant rise in the amount being saved in private bank accounts.
Confidence in the UK economy has been cited as one of the main reasons why more borrowers are seeking to purchase a property.
Richard Woolhouse, chief economist at the BBA, said: “British businesses and consumers have started to put their foot on the gas.
“There appears to be broad confidence about the economy, which the banks are supporting through affordable credit, leading to rises in borrowing across the board.
“Business lending has risen in three of the first four months this year indicating that we might have reached a turning point.
“There was a significant pre-election jump in mortgage approvals which we would expect to continue in the coming months.”
There have also been official indicators published that show how consumers are becoming increasingly confident about taking out a personal loan or using a credit card.
While business lending is also on the rise, annual growth in credit card borrowing, personal loans and the use of organised overdrafts was 4.9 per cent, marking the fastest rate of increase seen since autumn 2010.
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