The amount of mortgage approvals in Jan this year rose from around 38,000 to 39,230 which is a 4% rise on the previous month and according to the figures released by the Bank of England, the rise in mortgage approvals might continue going up.

The total cost of all the mortgages approved by the banks in Jan came to £4.6 billion, this is a £900m increase on the previous month, although this increase is not as large as the monthly average of £1.6 billion, it didn’t even meet the increase that was seen in February of £1.5 billion, although, the total sum of money approved through mortgages in Jan, £4.6 billion which is well over the monthly average.

There was also good news from the building societies, the amount of mortgages approved by building societies rose to £1,542 million, compared to the £742 million approved in February.

Finally, the British Bankers Association released new figures regarding lending to small businesses. Their figures showed that lending to small businesses had risen by £271 million in Jan this year.This has had a knock on effect of reducing small business insurance premiums for many companies. However, the news releaased by the Treasury Committee say that small businesses are finding it even harder to borrow money that they need.

Although these figures sound good, mortgage approvals are seen to be forward thinking, the actual mortgage lending in Jan only rose by £800 million which is far less than expected and a lot less than the 6 month average of £1.2 billion.

All these figures may be good news for the economy and housing market, there are still a range of concerns about house prices and how they could slump again, however, even if they didn’t the economy is still in a delicate state of balance.

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