23 Oct

Increase in mortgage lending recorded

Increase in mortgage lending recorded

The level of mortgage lending rose in September, new figures from the British Bankers Association (BBA) have indicated.

Figures for last month showed that the seasonally adjusted value of loans for home purchases was £3.2 billion, compared with £2.8 billion in August.

The total of mortgages approved was also up since August, from 21,342 to 23,422.

While the figures were both down on the previous six-monthly averages, there may be further encouragement for those seeking mortgages in the near future, as experts are tipping the Bank of England's monetary policy committee (MPC) to cut the base rate again - something that could significantly lower mortgage costs.

Howard Archer of Global Insight said such a move would be a dramatic one, stating: "We expect to see a 0.5 per cent cut to four per cent in November."

Vicky Redwood of Capital Economics said the minutes of this month's MPC meeting showed that the decision to lower the base rate by 0.5 per cent was "unambiguous".

She added: "The case for leaving rates on hold - or indeed cutting by 0.25 per cent - wasn't even discussed."

Ms Redwood suggested the base rate might even end up below the record low of 2.5 per cent in 1951.ADNFCR-1222-ID-18841018-ADNFCR

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