[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 30 October 2006, 11:51 GMT
Home loan demand at two year high
A couple looking around a house
Mortgages approvals are booming along with the housing market
Mortgage approvals are running at their highest level for two years, according to official figures.

The Bank of England said that 126,000 mortgages were approved for home purchase in September - up 6,000 on the previous month.

The figure exceeds some analyst expectations and is yet another sign of the UK's buoyant housing market.

But, the numbers of people remortgaging their homes fell slightly between August and September.

Total net lending to individuals grew by 9.9bn during September - an increase of 0.4bn on the previous month, the Bank said.

Jonathan Loynes, chief economist at Capital Economics, said that the high level of mortgage approvals meant that house price inflation was unlikely to cool anytime soon.

"Approvals were stronger than anticipated in September," Mr Loynes said.

"They are a clear indication of demand and are also a good predictor of where house prices will go in the next three to six months. House price inflation will continue at a high rate."

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific