Bank publishes positive lending figures

Published: February 29, 2008

Mortgage lending rose in January, according to the latest figures from the Bank of England.

According to the data, 74,000 loans were approved for house purchase in the month.

This signifies a rise of 2,000 on the 72,000 which were approved in December and is a sign that the mortgage market is returning to health.

According to the Bank, remortgaging activity also increased in the month, rising from 101,000 in December to 119,000 in January.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said that he was not surprised by the figures.

"The modest rise in mortgage approvals in January is broadly consistent with the picture painted by the Rics new buyer enquiries series so the increase announced today did not come as a complete surprise to us," he commented.

"Remortgaging activity has been picking up sharply in recent months. This reflects both the drift down in mortgage rates and the ending of a large number of fixed-rate mortgage products which need to be refinanced," continued Mr Rubinsohn.

The British Bankers' Association recently revealed that mortgage lending rose in January.