Mortgage news: good and bad

According to a Bank of England survey, mortgage approvals jumped 20% in February. At 37,937 approvals, it`s the highest figure since May 2008, but many economists believe we`d need to see around 70,000 - 80,000 monthly approvals before the fall in house prices came to an end.

Although last month`s 0.9% rise in house prices - according to the Nationwide House Price Index - came as a surprise to many, economists have warned against reading too much into the figure.

Fionnuala Earley, Nationwide`s Chief Economist, stressed that `it would be unwise to draw strong conclusions` from this, even though it meant the annual decline in house prices had decreased, dropping from 17.6% in February to 15.7% in March. She went on to say that `while the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached`.

"Right now," said a mortgage expert for Think Money, "anyone looking to buy or sell a property will be watching house prices closely, trying to figure out when the market will `bottom out`.

"However, it`s important to recognise that house prices depend on much more than the availability of mortgages. Rising unemployment figures, for example, can mean more properties end up on the market, pushing prices down further."

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Tags: mortgage, mortgage news, good, bad, bank of england, Nationwide, Nationwide House Price Index, house prices, prices, bottom out, market, housing market, prices down

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