The Times today reported that the number of new mortgages agreed by leading banks edged higher last month, raising hopes that the worst of the drought in the home-loans market may have passed. A total of 22,448 loans for house purchase, rather than remortgaging, were approved by banks during July, up slightly from June.
In addition, the Financial Times noted that the monthly increase in net lending was steady at £4.3billion , while the average value of loans for house purchase was £138,000, 11.9per cent lower than last year’s level. Such statistics reflect falling house prices and more conservative lending.
Elsewhere, the Daily Mail reported that the Monetary Policy Committee believes pressures on inflation in the economy have eased, leading many economists to predict a base rate cut by the end of the year. The Daily Mirror said there is a great divide in the mortgage market between those seen as low- or high-risk by lenders, with the best deals only available to those with a big deposit or large stake in their home.