Categorized | International

Mortgage Approvals Rise in the United Kingdom

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The residential real estate market in the United Kingdom is finally starting to come around, as the number of mortgage approvals in the country reached numbers that exceeded all expectations. The number of mortgage approvals in the United Kingdom hit a twenty-month high at over fifty-two thousand loans.

 

Overall home prices still have not yet experienced any kind of increase, largely due to growing uncertainties regarding the national, and global economies.

The increase in mortgage approvals can be attributed to a rise in applications. The current mortgage loan interest rates are at record low levels, which are certainly helping to increase demand within the residential real estate market.

The total monetary value of the loans approved increased by over six hundred million pounds, or nine hundred and forty million dollars in the last month. Despite the strong increases, however, analysts are being very cautious in showing optimism about the residential real estate market. There are some fears that, even with increased loan approvals, housing prices will soon experience further drops.

Analysts cite the fact that, even at the current twenty-month high in mortgage approvals, the numbers are not even half of what they were during the housing boom prior to 2007.

The British government is hoping that the current low interest rates will continue to spur interest among potential homeowners, and that they may look past the possibility of another global recession. Analysts, however, are not as hopeful, and cite numbers that indicate that the nation’s economy has weakened in the past quarter.

Amidst the uncertainty, there is no clear indication as to whether or not the increase in mortgage loan approvals will continue, though government officials and real estate agents are hopeful that they will.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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