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| Mortgage approvals rise following decline at start of year | Mortgage approvals rise following decline at start of year |
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| The number of mortgage approvals for house purchase bounced back in March after falling in the first two months of the year, latest Bank of England figures show, as activity picked up in the homebuying and remortgaging markets. | The number of mortgage approvals for house purchase bounced back in March after falling in the first two months of the year, latest Bank of England figures show, as activity picked up in the homebuying and remortgaging markets. |
| A total of 53,504 home loans were approved for house purchase during the month, up from February's five-year low of 51,947. However, the figure remained below the 55,415 approvals registered in December. | A total of 53,504 home loans were approved for house purchase during the month, up from February's five-year low of 51,947. However, the figure remained below the 55,415 approvals registered in December. |
| Since the start of the year lenders have continued to cut interest rates on loans for borrowers with large amounts of equity, and the figures suggest some borrowers are being tempted off their lender's standard variable rates (SVRs). The number of remortgages approved hit 30,088 against an average of 28,028 over the previous six months. | Since the start of the year lenders have continued to cut interest rates on loans for borrowers with large amounts of equity, and the figures suggest some borrowers are being tempted off their lender's standard variable rates (SVRs). The number of remortgages approved hit 30,088 against an average of 28,028 over the previous six months. |
| The Bank's figures show the average cost of a two-year fixed-rate mortgage for a borrower with a 25% deposit reached its lowest ever level in March, dropping to 2.91%, while the average SVR was 4.34%. | The Bank's figures show the average cost of a two-year fixed-rate mortgage for a borrower with a 25% deposit reached its lowest ever level in March, dropping to 2.91%, while the average SVR was 4.34%. |
| However, despite the increase in activity, mortgage approvals remain below their historic average and net borrowing remains muted. The Bank said net mortgage lending totalled £430m in March, down from £790m in February and below long-term trends. | However, despite the increase in activity, mortgage approvals remain below their historic average and net borrowing remains muted. The Bank said net mortgage lending totalled £430m in March, down from £790m in February and below long-term trends. |
| Howard Archer, chief UK economist at IHS Global Insight, said: "The Bank of England data tie in with our suspicion that house prices may very well achieve a modest gain of a couple of per cent over 2013 supported by modestly firmer market activity, but it seems unlikely that house prices will make a decisive move upward given the still difficult and uncertain economic environment. | Howard Archer, chief UK economist at IHS Global Insight, said: "The Bank of England data tie in with our suspicion that house prices may very well achieve a modest gain of a couple of per cent over 2013 supported by modestly firmer market activity, but it seems unlikely that house prices will make a decisive move upward given the still difficult and uncertain economic environment. |
| "Indeed, periodic slips in house prices remain highly possible over the coming months." | "Indeed, periodic slips in house prices remain highly possible over the coming months." |
| Mark Harris, chief executive of mortgage broker SPF Private Clients, said the housing market was unlikely to gain much momentum unless lenders offered cheaper mortgages to borrowers with smaller deposits. | Mark Harris, chief executive of mortgage broker SPF Private Clients, said the housing market was unlikely to gain much momentum unless lenders offered cheaper mortgages to borrowers with smaller deposits. |
| "If the number of those buying and remortgaging is to be seriously boosted then lenders need to address better rates at higher loan-to-values. We don't need ever cheaper rates for those with a 40% deposit or similar level of equity in their homes. | "If the number of those buying and remortgaging is to be seriously boosted then lenders need to address better rates at higher loan-to-values. We don't need ever cheaper rates for those with a 40% deposit or similar level of equity in their homes. |
| "What we do need is more relaxed criteria, making it easier for those with more modest deposits to get the funding they need." | "What we do need is more relaxed criteria, making it easier for those with more modest deposits to get the funding they need." |
| The Bank's figures showed total lending to individuals increased by £0.9bn in March, compared to the average monthly increase of £1bn over the previous six months. | The Bank's figures showed total lending to individuals increased by £0.9bn in March, compared to the average monthly increase of £1bn over the previous six months. |
| Consumer borrowing through loans, credit cards, overdrafts and other forms of consumer credit remained muted, with March's increase of £0.5bn only fractionally higher than the previous six-month average of £0.4bn. Credit card lending was up by £0.2bn while other unsecured borrowing increased by £0.3bn. | Consumer borrowing through loans, credit cards, overdrafts and other forms of consumer credit remained muted, with March's increase of £0.5bn only fractionally higher than the previous six-month average of £0.4bn. Credit card lending was up by £0.2bn while other unsecured borrowing increased by £0.3bn. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Yorkshire BS | |
| Nationwide | Nationwide |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |