Mortgage approvals up again Article Published: 14:24 29/12/2009 Article Classification: United Kingdom
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UK mortgage approvals increased for the 8th consecutive month in November rising a further 5.1% to 44,713 units from 42,552 in October. At this level approvals are up 152% year on year from the cycle low last November of 17,738.

More significantly at these levels they are 0.7% above the November 2007 level when re-mortgaging was rife, as opposed to almost non-existent today. Some recovery, but we should expect at least a short-term setback in the new Year when the stamp duty holiday comes to an end.

The number of UK first time buyers registering with estate agents last month was approximately 20% of the total according to the National Association of Estate Agents, a sharp fall from last may when around 43% of the market was taken up by first time buyers.

The UK third quarter savings ratio shot up to 8.6%, well above its long term average and a mile away from the minus 0.7% recorded just before the recession began . You may not get any interest, but it is nice to have a little put by for a rainy day. The change was helped by a 3% rise in real disposable income as mortgage repayments and interest rates collapsed, leaving more for the consumer to both save and spend.