Bank of England figures a "step in the right direction" - commercial mortgages

30 October 2008

The latest figures from the Bank of England on mortgage approvals are a "step in the right direction", according to the Royal Institution of Chartered Surveyors (Rics).

Senior Rics economist Oliver Gilmartin stated that the increase in the amount of loans approved between August and September could offer some hope to those in the property business.

Any sign of recovery in the markets could be good news for those with commercial mortgages.

"The combination of aggressive interest rate cuts and recent falls in interbank lending costs offer some encouragement for the UK mortgage market," Mr Gilmartin said.

He added that with "money being thrown" at industries around the world, real assets could "fall into favour" over the coming months.

The Bank data for September revealed that the amount of loans approved for house purchase was 33,000 and remortgaging 72,000, showing a rise from August.