The number of mortgages for house purchase in December was the highest monthly total for nearly six years, the Bank of England has said.
The number of loan approvals for house purchase was 71,638 in December, compared to the average of 65,001 over the previous six months. The number of approvals for remortgaging was 34,754, broadly in line with the average monthly increase over the previous six months. The number of approvals for other purposes was 13,340, compared to the average of 13,074 over the previous six months.
Lending secured on dwellings increased by £1.7 billion in December, compared to the average monthly increase of £1.1 billion over the previous six months.
Gross lending secured on dwellings was £17.6 billion and repayments were £15.7 billion.
Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), said: “The Bank’s latest figures give us every reason to be optimistic about the coming year, as they show mortgage lending increased by £1.7bn in December and the number of mortgage approvals continued to rise. Although the number of remortgage loans remained reasonably static during this month, the number of house purchase loans, which now sits above 70,000, has nearly doubled over the past three years.
“The mortgage market is in a much stronger position now when compared to this time last year. Although improving economic conditions have aided this, no-one can deny the vast influence that government measures have had in stimulating lending and improving consumer sentiment. Help to Buy will sustain this momentum which is especially important as final preparations for the implementation of the Mortgage Market Review (MMR) fall into place.
“We have every reason to believe that momentum will continue to build, especially as Governor Carney is taking a sensible, pragmatic approach to increasing interest rates. The Bank’s figures provide confidence that the mortgage market is strengthening but its long term health rests on how and when government support will be withdrawn, and what the market will look like when this happens.”