Despite an increase in loan approvals, February forecasts remain unchanged and the figures show no signs of increase in loan value. The Council of Mortgage Lenders state that the number of Mortgage approvals in February was 4% higher than the previous month at 24,300. However the number of all the loans approved was £3.1bn exactly the same as in the month of January, and it was still only at just over half the level in last February.
The CML said that the marginal increase did not boost activity levels which remained very weak, with the 24,300 figure less than one third the historical average of 76,000 registered between 2002 and 2007.
9,400 loans were approved for first-time buyers in February, an increase of 7% from January but a fall of 46% since February 2008.
The CML however asserted that those able to get Home Loans, owning a house was more affordable than at any time since 2004 as mortgage interest payments are now at 15.4% of a first-time buyer’s income which is down from 20.1% in February 2008.
Michael Coogan, CML director general, said that he was not too satisfied as the growth did little to change the mortgage market activity in 2009.
He said that more market measures should be started by the government to encourage a mortgage market where all types of lenders - building societies, banks, and specialist lenders, and large and small businesses can invest more money in the mortgage market.