Rate cuts and price falls 'contributing to mortgage boost'

07 April 2009

Increases in mortgage approvals have come about as a result of a "potent mix" of factors, an expert has noted.

The British Bankers' Association recently revealed that the number of loans granted for this purpose passed 28,000 in February - up 16 per cent on the previous month's figures.

And chief economist at the Royal Institution of Chartered Surveyors Simon Rubinsohn explained that the rise has come in part due to the drop in prices that has been seen over the last year.

He added that interest rate cuts have also played a part, something that could lead to cheaper buy to let mortgages.

However, Mr Rubinsohn observed that the increase in lending comes following a particularly poor performance over recent months.

"Things are better," he said, but noted: "It is important to bear in mind that what we are talking about in terms of mortgage approvals is a pick up from abnormally and abysmally low levels."

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