FinanceTeam

UK Mortgage Approvals Hit Highest Levels For 6 Months

A report released by the British Banks Association today shows that in May 2007 UK banks approved the most mortgages since November last year, strongly suggesting continued strength in the UK housing market.

The BBA announced that lenders have granted over 77,000 mortgages in May, a rise of nearly £6 billion, up from around £5 billion in April.

This seems to support the Bank of England's recent decision to raise interest rates to 5.75%, with continued housing growth reportedly a major factor in their decision. According to the Council for Mortgage Lenders, this could leave up to 2 million homeowners out of pocked as they come out of fixed rate deals in the next 18 months.