Mortgage Lending is at healthiest position since crisis
The Bank of England said, the mortgage approvals for purchasing house have reached at its peak of last 11 months in December. In December, lenders approved 55,785 new mortgages while lenders could approve 54,011 loans in November. According to analysts, this growth in mortgage lending indicated that it was at best part since the beginning of the year 2012. Matthew Pointon a property economist conceptualizing from the provisional point which caused by stamp duty vacations, it reaches the highest numbers since the beginning of 2008.
The financial crisis came in action during 2008 and currently the statistics of mortgage approvals is hanged about half that seen before the financial crisis of 2008 but it has seen a hike of 6.1 pc on the number of approvals witnessed 12 months before. There is some good news for the unsecured lending market as it also has seen a rise. In the last month of 2012, the consumer credit increased by £649 million and out of this the borrowing on credit cards seen an increment of amount worth £232 million.
The figures exposed in data also showed that the M4 money supply which has top billing of the dimension of the flood of cash all across the economy was hiked by just 5pc a year back. The data of the Bank of England also revealed that economy witnessed a shrink of 0.3pc during the last quarter of the year 2012 which ended on 31st December, 2012. This shrinking of economy increased the expectation of triple dip recession.
In the last month of the 2012, the net lending to the private sector seen a fall down of around £2.1 billion, this fall down in the lending market showed that the scene of business lending was at a weaken stage. The small business firms which take up the loan of amount ranging up to £1 million are charged by an average interest rate which currently stands at 3.65%. This average interest rate has increased from the position of 3.39% which was a month ago. This indicates that the interest rate has scarcely changed within a year. After watching this condition, the economists said, this will be too early to declare whether the funding for lending scheme is creating the desired impact on the lending market.
Economist David Tinsley this will be better than nothing that a household gets boost from the FLS. However, the rebalancing of the economy will be served incomparably if the businesses are the part of the phase.
Sunny Cage is an financial writing expert and he writes on cash loans, pounds to pockets and more. For more please visit : http://www.cashloanstopocket.co.uk/
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