More than 36,000 mortgages were approved in the three months leading to May.
- 36,102 mortgages were approved in the quarter to May
- This is a rise from 32,952
- Mortgage rates have also declined with several five-year fixed rates available below 4%
There has been a rise in the number of mortgage approvals in the UK recently.
Figures from the British Banker’s Association (BBA) showed banks approved 36,102 home loans in the three months leading to May 2013.
This is an increase from 32,952 during the previous three-month period and surpassed expectations of 33,100.
Head of Lending at Mortgage Advice Bureau Brian Murphy said: “Increased mortgage borrowing and house purchase approvals from the high street banks continue to fuel optimism for the market in May.”
According to the BBA, this increase is a result of the introduction of the government’s Funding for Lending and Help to Buy initiatives.
The former enables homebuyers to borrow money at low rates, as lenders are able to borrow from the government at similarly reduced rates. The latter scheme provides equity loans worth 20% of property’s value for new-build homes, enabling house purchasers to buy a property with only 5% deposit.
Help To Buy, which was introduced in April this year, is available on homes worth £600,000 or less and is only applicable to borrowers who are UK citizens purchasing their main home.
Mr Murphy added mortgage rates are also falling, encouraging more homebuyers to borrow money for their home.
“With five-year fixes below 4% for the first time in recent history, there’s never been a more enticing time to enter the mortgage market,” he said.