The number of homebuyer mortgages approved by banks rose to a two-year high in December, but a continuing lack of remortgaging activity helped keep total lending down.
The figures from the British Bankers Association (BBA) showed 45,897 loans were approved for house purchases during the month, slightly more than double the number approved in December 2008. However, the number of remortgages dropped by 63.3% year-on-year to 23,480. This was mainly due to specialist lenders largely withdrawing from the market and building society finance contracting.
Over the whole of the year, the BBA said its members had approved a total of 980,000 home loans, the lowest figure since records began in 1997 and 27% lower than in 2008.