Mortgages hit 4-year high

MORTGAGE lending has hit its highest level for nearly four years as confidence returns to the housing market following the general election.

Bank of England figures show 70,888 home loans for house purchases were given the goahead in January – the highest since 72,251 in February 2016.

January’s total was 4.4pc higher than in December, and also well above the general trend over the past few years.

Remortgaging approvals were also up by 3.9pc, to around 52,100. The figures add to recent evidence of a housing market pick-up. Last week, Nationwide Building Society reported that house prices increased in February at the fastest annual rate for 19 months.

Simon Gammon, of Knight Frank Finance, said: ‘UK lenders have started the year eager to do deals. Many that have waited for political clarity before making significant financial decisions are pushing on.

‘Growth in remortgaging has been particularly strong and the ongoing rate war among the High Street lenders means borrowers have been spoilt for choice when it comes to deals.’

The Bank of England’s Money And Credit report also said that the annual growth rate of consumer credit, which includes borrowing using credit cards, personal loans and overdrafts, has stabilised, remaining at 6.1pc in January.

A peak of 10.9pc annual growth in consumer credit was reached in late 2016.

Meanwhile, business borrowing continued to follow a trend of weakness seen during the end of last year, the report said.