Mortgage approvals up 7% in August

goldfish jumping into a bowl

goldfish jumping into a bowlThe property market has received a much-needed boost after it emerged that 7% more mortgages were approved for house purchases in August than in July.

August approvals stood at 52,000, as the Council of Mortgage Lenders (CML) revealed that people moving house spent less than a tenth (9.4%) of their income on mortgage interest payments, the lowest level since monthly records began in 2002.

This was, according to the CML, indicative of further declines in the interest rates currently available to borrowers with larger deposits.

Paul Smee, CML director general, said: "Even though it is impossible to ignore the knocks to confidence emanating from the eurozone, August lending showed welcome signs of life.

"With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy."