The British Bankers' Association has said that mortgage approvals went up last month.
January saw an increase in the number of mortgages being approved by high-street banks, new figures have revealed.
According to the British Bankers' Association (BBA) there were 23,376 approvals last month, up by four percent from December's figure of 22,416. Despite this slight jump, the number was still 43 percent lower than the same month last year.
In terms of value, net mortgage lending increased by £2.9 billion, less than the £3.3 billion recorded in December, but recording annual growth of ten percent, despite the "much slower market", said BBA statistics director David Dooks.
"Lower borrowing costs and falling property prices have underpinned demand at these lenders, who are providing over two-thirds of all new mortgage lending," he added. "There is only limited demand from households for unsecured credit, while a fall in their deposits in January reflects a tendency to draw on cash or to move into alternative financial products."
The housing market has come under increasing strain as the UK's recession has deepened. The Land Registry, seen by many analysts as the most authoritative guide to the sector, said that last year saw house prices plummet by 13.5 percent in England and Wales, while the Council of Mortgage Lenders recently said there was a 54 percent jump in the number of repossessions, reaching 40,000.
