Mortgage approvals "catching up"

Previous mortgage approval levels may have been very low but they are now "just catching up a little bit," one property expert has asserted.

Catherine Hearnden, director of MyMortgageDirect, which is run by independent financial advisers, said that mortgage approvals were increasing because more people are moving house.

Her comments follow the publication of the Rightmove House Price Index which revealed that confidence continues to grow, with 75 per cent of home movers not expecting prices to fall in the next 12 months.

"You will have some people who are speculating, thinking: 'Well, this could be the bottom of the market or we've passed it, so let's get on the ladder while we can," said Ms Hearnden.

The news comes after the British Bankers' Association commented on figures from July, saying they showed that unsecured lending has continued to be weak, while the trend in deposit levels appears to be improving.