Mortgage Approvals on the rise slightly

The British Bankers Association has reported an increase in net mortgage approvals between January and February.

There were 28,179 mortgages approved for house purchase in February, up from 24,278 in January but still down 31% on a year earlier. This represents an increase of £3.9bn by the major banks in February, up from £3.4bn in January. However gross mortgage lending fell to £9.2bn, its lowest since June 2001

The British Bankers Association figures also reveal the effect of low interest rates on savers, who have seen returns on their funds dip. The figures show that consumers have responded by withdrawing savings from the major banks. Personal deposits fell by £100m in January, the second successive monthly fall. Credit card lending rose by £0.1bn, but the annual growth rate fell to 8%.