Mortgage approvals on the increase

A rise in mortgage approvals by the major banks for the third month in a row has brought some cheer to the housing market.

The British Bankers Association has just announced that there were over 28000 mortgages approved for house purchases in February, up from just over 24000 in January.

As mentioned in my previous post, mortgage repayments have become far cheaper for a lot of people with interest rates currently standing at 0.5%. However, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors says "The increase in buyer enquiries is now feeding through into actual transactions, but even so, the actual level of activity still remains not that far away from historic lows and it would be premature to conclude that some semblance of order has returned to the housing market"

For the first time in my life, at 25, I have finally been able to save up a moderate amount of cash. Lets just say its enough to fill a Cash ISA. Typically a Recession then hits, and my hard earned money is just sat there dusting over. If I was able to put it towards a deposit for a house that would be great, but with the current state of the Mortgage market its not currently possibly.

Mortgage approvals might be on the increase, as was a headline in todays papers, but in reality they are still at an all time low!