Mortgage boost 'shows recovery hope'

by Rachel Crook

The recent increase in the number of mortgages being lent is a genuine sign of hope for the property market, it has been suggested.

Director of property website Selwyn Kim said no clear sign of recovery could be established from fluctuating data such as the contradictory figures for March house prices revealed by Nationwide and Halifax.

Such statistics are like "crocodiles' teeth" in the way they go up and down, he stated, labelling these "more of a feature of index volatility than any underlying movement in real house prices".

On the other hand, the Bank of England's finding that lending was 19 per cent up in February amounted to a "far more encouraging" sign.

Those keen to invest in property now may wish to pick up a legal pack on the process.

Another potentially positive sign may be the reappearance of mortgages at higher loan-to-value (LTV) rates.

HSBC has just announced the launch of three new 90 per cent LTV deals, as part of a new strategy by the bank of raising its lending levels to twice the amount it provided in 2007.

Published on: April 8, 2009

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