The latest data from the Bank of England also showed that loan approvals for house purchases totalled 76,947 in January, compared to the average of 67,461 during the previous six months, while total mortgage repayments were £15.5bn.
The Bank of England figures also revealed that the residential remortgage market saw an improvement, with 36,398 approvals for remortgages compared to the average monthly increase of 35,248 during the previous six months.
Total lending to individuals increased by £2.1bn in January, up by 1.4 per cent from the past 12 months, which was in line with the average monthly increase during the previous six months.
| Lending secured on dwellings | | |
| Gross lending (£bn) | Repayments (£bn) | Mortgage approvals |
| Oct-13 | 15.9 | 14.6 | 116735 | |
| Nov-13 | 16.3 | 15 | 119523 | |
| Dec-13 | 17.6 | 15.7 | 121261 | |
| Jan-14 | 17.2 | 15.5 | 126395 | |
| | | | |
| Source: Bank of England |
Nigel Stockton, financial services director at Countrywide, said the pick-up in lending overall was likely to continue throughout the year, with intermediaries expected to do the majority of mortgage business.
He said: “The mortgage market is in a good place with all the indications pointing to improvement across the country. Last year was a renaissance year for mortgage intermediaries and there’s no reason not to think this will be repeated in 2014.”
David Whittaker, managing director of Mortgages for Business, said the figures reflected the “steady trajectory” of improvement in the wider economy.
He said: “The cost and availability of mortgages are the best they have been since the start of the financial crisis. However, the price of homes in many areas is also at a post-crisis high, while wages are only just starting to catch up.”
