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Number of mortgages continuing to increase at end of 2012

BY Robert Fitzpatrick, Property Director, The Glasgow Law Practice – 30 years of property sales in Glasgow and the West of Scotland. The UK property market is picking up, according to the latest figures from the Bank of England.

The number of new mortgages approved for home buyers, but not yet lent, rose to 54,036 in November- the highest figure for that month for three years.

Mortgage approvals hit a low for the year of 44,523 in June 2012, but have been rising steadily since then, suggesting a tentative return of confidence to the housing market.

During the same period, the Bank of England’s Funding for Lending Scheme (FLS) was introduced, and the new figures suggest this has encouraged more lending to home buyers.

The number of approvals is generally regarded as a good indicator of forthcoming trends and means sales should keep on rising in the coming months.

In the first 11 months of 2012, completed sales were 6% higher than in the same period during 2011.
Last week a survey of lenders by the Bank reported that FLS had encouraged more lending in the final three months of 2012, and that there would be a significant further increase in 2013.

Both the Council of Mortgage Lenders and the Royal Institution of Chartered Surveyors have predicted that FLS will help to revive lending and sales this year.

Obviously National figures cannot be used to indicate recovery across the board.  A vital component of recovery in the housing market is the willingness of banks to start lending to house buyers at a reasonable level again.  Our experience is that clients find the experience of securing mortgage funding an extremely daunting one and many prospective purchasers simply give up.  We have 30 years of experience in Glasgow and the West of Scotland, assisting Clients with this initial part of the home buying process and please do not hesitate to contact our experienced property professionals to discuss any matter relating to a prospective purchase. 

Please call either Robert Fitzpatrick or Peter Maley on 0141 552 9193