Mortgage lending dips in January
By myfinances.co.uk staff
Mortgage approvals fell in January, as activity dropped for both new loans and remortgaging, the Bank of England has said.
Its latest Lending to Individuals report shows there was a total of 94,845 approvals for loans secured on dwellings during the month, down from 111,453 deals in December and below the previous six-month average of 110,479 deals.
Lenders gave the green light to 48,198 mortgages worth a combined £6.5 billion for house purchase, down from 58,223 loans worth £8 billion for the previous month.
January's figure was also below the six-month average for new home loans of 55,924 deals worth £7.7 billion.
Remortgaging approvals stood at 23,611 loans worth £3.1 billion. This compares with 27,322 loans worth £3.6 billion agreed in December and a six-month average of 27,226 loans worth £3.5 billion.
Commenting on the data, Royal Institution of Chartered Surveyors chief economist Simon Rubinsohn said the end of the stamp duty holiday for properties valued at between £125,000 and £175,000 appeared to have dampened market activity.
"The number of mortgages approved was the lowest since May last year," he said.
However, he added that the number of monthly approvals is expected to climb towards 70,000 over the course of 2010.
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