Mortgage Approvals in UK Hit 20-month High

Mortgage approvals hit 20-month high, yet experts are concerned over the prospects on the British housing market.

Yesterday, on September 29th the Bank of England said that UK mortgage approvals rose once again last month.

As such, almost 52,500 mortgages were given out in August, which is the highest reading in the past 20 months.

In the opinion of industry experts, improved accessibility of mortgages, low interest rates and decreased house prices will, most likely, lead to higher sales in the near future. On the other hand, the uncertainty over British and world economy seriously affected consumer confidence, which might be reflected in the activity on the housing market.

Let is remind that earlier this week Nationwide reported that UK house prices stayed relatively flat in September. The bank’s economist, Robert Gardner, said that low mortgage costs “should continue to provide support for housing demand, providing the strains in the banking system do not intensify.”