Mortgage approval levels at six month high

Mortgage approval levels highest since August.

11:01 18 March 2005

Mortgage approval levels reached their highest point since August last year in February says new data from the Building Societies Association (BSA).

The BSA reports that the number new mortgages approved but not yet taken out, was well up on figures recorded last month, with approvals totalling 3.394 billion. August last year saw a total of 3.68 billion, the last time approvals were higher.

Also reported was a rise in gross mortgage lending in February.

Brian Morris, head of savings at BSA played down the rises, saying: "These figures show the slowdown in the housing market is continuing, confirming expectations of a quiet start to 2005."

Mr Morris also said that he was expecting a "slight pick up" but that it was unlikely to see lending levels approaching the highs of the last two years.