Bank of England: Mortgage approvals hit three-year high

British mortgage approvals hit a three and a half year high in May, Bank of England data has revealed.

Mortgage approvals numbered 58,242 in May, the highest reported figure since December 2009, and were up from 54,354 in April.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Mortgage approvals continue to improve, both for new purchases and remortgages.

“This is entirely what you would expect given the plethora of rock-bottom mortgage rates now available. “Despite some erratic movements from Swap rates in the past week, mortgage rates are likely to stay low for some time yet.”

Harris said he also expects criteria to continue to loosen as lenders look at ways to attract borrowers other than simply undercutting each other on rate.

Harris said: “While the numbers continue to rise, they are still well below what they were at the peak of the market before the crisis. “The health of the housing sector is showing a slow and steady improvement but it is by no means out of intensive care just yet.

“Still, the indicators are good and government schemes such as Help to Buy will continue to provide much-needed assistance, particularly for struggling first-time buyers.”

Peter Lawrence at Lawrence Rand added: “The property market is showing positive signs of improvement and these latest mortgage lending figures reinforce the view that there are more property transactions taking place in 2013 than recent years.”