Mortgage approvals soar 81 per cent year on year

MORTGAGE approvals have risen 81 per cent year on year as the housing market recovers from its sharp spiral downwards, the British Bankers&rsquo; Association (BBA) said yesterday.<br /><br />Approvals fell slightly in August compared to July after seven consecutive monthly rises, the BBA said, attributing the dramatic year-on-year increase to the lending drought that gripped the global economy amid the turmoil of 2008.<br /><br />Last month saw 38,095 mortgages approved for house purchases by major banks, compared to just 21,001 during August 2008, when approvals were on their way to an all-time low.<br /><br />BBA statistics director David Dooks said mortgage lending had stabilised but warned that &ldquo;low levels of customer demand and a limited number of properties coming onto the market will continue to moderate lending&rdquo;.<br /><br />Net mortgage lending rose by &pound;2.8bn in August, just above the previous six month average of &pound;2.7bn, representing year-on-year growth of 4.6 per cent.<br />Consumer credit continued its contraction, falling &pound;0.2bn compared to the previous month, but personal deposits grew by 3.7 per cent annually, up &pound;3.3bn in August.