UK mortgage lending at highest since 2008

UK mortgage approvals and gross mortgage lending by banks hit a seven-year high in October, new figures show.

According to the British Bankers’ Association, gross mortgage borrowing in October was £12.9 billion, 26% up on a year ago and the highest since August 2008.

The data revealed that the number of mortgage approvals in October has shot up 27% in the past 12 months to 77,951.

The BBA said remortgaging was up 34% for the year to 24,275 approvals.

The average value of homes approved for mortgages was £175,600, up from £173,000 last year.

In recent months there has been a price war amongst lenders which has seen borrowers rush to snap up cheap deals.

Richard Woolhouse, chief economist at the BBA, said: “These statistics show that housing market activity remained strong in October, with gross mortgage borrowing 26 per cent higher than a year ago and at its highest level for seven years.

“Consumers remain confident and their incomes are growing. Mortgage rates are at multi-year lows and people are snapping up the very competitive deals being offered by banks.”