Mortgage approvals reached the highest level for six years in December, according to data from the Bank of England.
In the final month of the year 46,521 mortgages were approved for house purchase, an increase of 42.1 per cent on December 2012.
The figure for home loans approved last year was 734,969, an increase of 20 per cent on the previous year’s total of 612,654.
The government’s lending incentive scheme Help to Buy has been credited as contributing to the rise in approvals.
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), comments: “The overall number of house approvals was 10% higher in December compared to the average for the previous six months, suggesting consumers were spurred on by increased mortgage availability and low interest rates.
“This upward trajectory looks set to extend well into 2014 as more buyers seek to lock into low mortgage rates which are unlikely to get much better. House hunters looking to make a fresh start in the New Year can be reassured that funding is out there as mortgage lending rose to £1.7billion in December: £0.6billion more than the monthly average for the previous six months.
“Close supervision from the Bank of England should provide measured growth and ensures those with low deposits aren’t priced out of a flourishing housing market.”
Andy Knee, chief executive of LMS, comments on today’s Bank of England lending statistics for December: “Mortgage lending in 2013 ended on a unanimous high note, with the number of house purchase loan approvals breaching the 70,000 barrier for the first time in a number of years. Obviously even despite the Christmas chaos, savvy households took heed of the range attractive and alluring deals on offer.
“While equally encouraging, remortgaging levels sustained the positive momentum achieved over the previous six months. In fact borrowers are now remortgaging at their most frequent rate for over four years. On average remortgaging now occurs every 52 months – or 4.3 years. Every indication is that the first few months should follow suit, with the trajectory clearly upwards. ”
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