The Council of Mortgage Lenders (CML) has revealed that the number of home loans approved by lenders in October reached its highest level since 2007. 55,300 mortgages for house purchases were approved in October, the highest level since December 2007. Home movers account for the majority of this number, with 35,600 of loans granted in October given to borrowers who already owned a property .
The figures are a significant improvement on the low of January this year, when just 23,000 home loans were approved. The number of first time buyers has more than doubled since January, up from 8,900 to 19,700. However, this increase could be slowed by Alistair Darling’s announcement that the temporary stamp duty holiday will end at the end of the year as planned.
The number of borrowers agreeing to remortgage remains low, however, and continues to suppress the market. With interest rates still low, borrowers are reticent to remortgage for fear of the rates they will end up paying once the Bank of England decides to increase the base rate . Fixed rate mortgage have, however, surged in popularity, and accounted for two thirds of loans in October.






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