UK mortgages pick up at last

The number of mortgages approved for house purchase rose to a 13-month high in May as buyers continued to return to the property market.

Figures released by the British Bankers' Association showed a total of 31,162 loans were approved for people buying a property during the month, seven per cent more than in April.

The figure was also 16 per cent higher than it had been in May 2008, the first time the annual measure has shown an increase since November 2006.

The rise in the number of mortgages approved for house purchase adds to growing evidence that buyers are returning to the property market on the back of record low interest rates and recent house price falls.

Both Halifax and Nationwide reported price rises during May, while the National Association of Estate Agents said their members sold the highest number of properties during the month since October 2007.

But economist Howard Archer, of IHS Global Insight, warned:"We believe the pickup in actual house purchases is likely to remain gradual for some time to come."

Source: http://www.dailyrecord.co.uk/news/business-news/2009/06/24/uk-mortgages-pick-up-at-last-86908-21467077/