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| Mortgage approvals at three-and-a-half-year high | Mortgage approvals at three-and-a-half-year high |
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| The number of mortgages approved for house purchases rose to its highest level in three-and-a-half years in May, according to figures from the Bank of England. | The number of mortgages approved for house purchases rose to its highest level in three-and-a-half years in May, according to figures from the Bank of England. |
| A total of 58,242 homebuyer loans were approved over the month, compared with an average of 54,139 over the previous six months. Separate data from the Building Societies' Association (BSA) showed the number of first-time buyers granted loans by mutuals was up by 50% in the first five months of 2013. | A total of 58,242 homebuyer loans were approved over the month, compared with an average of 54,139 over the previous six months. Separate data from the Building Societies' Association (BSA) showed the number of first-time buyers granted loans by mutuals was up by 50% in the first five months of 2013. |
| The figures, which follow a report from Nationwide building society showing a 4% rise in house prices in the first half of the year, add to a growing picture of an upturn in buying activity. | The figures, which follow a report from Nationwide building society showing a 4% rise in house prices in the first half of the year, add to a growing picture of an upturn in buying activity. |
| The BoE's figures for remortgaging also showed an increase, with 32,611 loans switched to a new lender. | The BoE's figures for remortgaging also showed an increase, with 32,611 loans switched to a new lender. |
| The number of remortgages has been building month-on-month, and May's figure compares to a previous six-month average of 28,717. The increase suggests record low mortgage rates aimed at homeowners with large amounts of equity are finally starting to tempt borrowers into making a move. | The number of remortgages has been building month-on-month, and May's figure compares to a previous six-month average of 28,717. The increase suggests record low mortgage rates aimed at homeowners with large amounts of equity are finally starting to tempt borrowers into making a move. |
| The total amount of new lending secured on residential properties rose to £14bn, although the rate of growth in outstanding mortgage debt slowed. The Bank's figures showed the value of outstanding secured loans was up £0.3bn in May against a six-month average of £0.6bn. | The total amount of new lending secured on residential properties rose to £14bn, although the rate of growth in outstanding mortgage debt slowed. The Bank's figures showed the value of outstanding secured loans was up £0.3bn in May against a six-month average of £0.6bn. |
| Gross lending during the month hit £14.1bn, but £13.6bn was paid off, leaving the total value of outstanding loans at just under £1.3tn. | Gross lending during the month hit £14.1bn, but £13.6bn was paid off, leaving the total value of outstanding loans at just under £1.3tn. |
| Although activity is picking up it remains at a low level by historical standards. Since 1983 the average monthly level of approvals for house purchases stands at 85,005. | Although activity is picking up it remains at a low level by historical standards. Since 1983 the average monthly level of approvals for house purchases stands at 85,005. |
| However, commentators have warned that attempts to stimulate sales, including the second part of the government's Help to Buy scheme set to launch in 2014, could lead to a house price bubble. | However, commentators have warned that attempts to stimulate sales, including the second part of the government's Help to Buy scheme set to launch in 2014, could lead to a house price bubble. |
| Howard Archer, chief economist at IHS Global Insight, said he thought this was unlikely in the short term, but added that "policymakers must be prepared to quickly pull the plug on the Help to Buy mortgage guarantee scheme at the first sign of any housing price bubble developing". | Howard Archer, chief economist at IHS Global Insight, said he thought this was unlikely in the short term, but added that "policymakers must be prepared to quickly pull the plug on the Help to Buy mortgage guarantee scheme at the first sign of any housing price bubble developing". |
| Archer said he was sticking to his view that house prices would see "solid but limited increases" in 2013, but admitted "there is a growing possibility that … house prices could surprise on the upside over the second half of in 2013". | Archer said he was sticking to his view that house prices would see "solid but limited increases" in 2013, but admitted "there is a growing possibility that … house prices could surprise on the upside over the second half of in 2013". |
| The BSA said its members had granted 32,000 mortgages to first-time buyers between January and May, a 50% increase on the same period of 2012. | The BSA said its members had granted 32,000 mortgages to first-time buyers between January and May, a 50% increase on the same period of 2012. |
| Among first-time buyers with a deposit of 10% or less the difference was even more marked, with more than two-and-a-half times the number of loans made, rising from 3,400 to 8,900. | Among first-time buyers with a deposit of 10% or less the difference was even more marked, with more than two-and-a-half times the number of loans made, rising from 3,400 to 8,900. |
| Net lending by building societies reached £1.2bn in May, up from £0.9bn in May 2012. From January to May net lending by mutuals was £4bn, more than double the amount lent in the same period in 2012. In contrast, the rest of the market contracted by £3.4bn. | Net lending by building societies reached £1.2bn in May, up from £0.9bn in May 2012. From January to May net lending by mutuals was £4bn, more than double the amount lent in the same period in 2012. In contrast, the rest of the market contracted by £3.4bn. |
| "Building societies and other mutual lenders continue to play a dominant role in supporting members of the UK public looking to buy a new home," said Paul Broadhead, head of mortgage policy at the BSA. "Supporting first-time buyers is very much part of the sector's ethos." | "Building societies and other mutual lenders continue to play a dominant role in supporting members of the UK public looking to buy a new home," said Paul Broadhead, head of mortgage policy at the BSA. "Supporting first-time buyers is very much part of the sector's ethos." |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| NatWest | |
| HSBC | |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |