The mortgage approvals are at the highest level in the last 51/2 years. 67,701 mortgages worth 10.5 million Euros were approved in October. The house price went up 6.5% in October and 6% in November.
Reports from Land Registry
The reports from Land Registry states that the house price increased by 3.4% in the previous 12 months. This statistic is based on the actual sales and not the mortgage. The annual house rate inflation is at 3.8%
Reports from the bank
The BoE announced that the total household debt has reached a record high level of 1.43 trillion Euros. Since the 2008 financial crash, the personal debt has been constantly increasing and now it is higher than it was before the 2008 financial crash.
With the increase in confidence in mortgage, loans, credit cards and overdrafts, the economy has improved. Now on an average every adult UK citizen owes about 28,489 Euro including home loans. The reports of BoE states that people owe 1.27 trillion dollars in home mortgages and about 158 million Euros, in consumer credit! This increase in approval number is due to the announcement from the Bank of England that the mortgage loan will be stopped through the FLS (Funding for Lending scheme) by the next year and that the focus will shift to small businesses.