There were 28,179 mortgages approved for house purchase in February, up from 24,278 in January but still down 31% on a year earlier. This represents an increase of £3.9bn by the major banks in February, up from £3.4bn in January. However gross mortgage lending fell to £9.2bn, its lowest since June 2001

The British Bankers Association figures also reveal the effect of low interest rates on savers, who have seen returns on their funds dip. The figures show that consumers have responded by withdrawing savings from the major banks. Personal deposits fell by £100m in January, the second successive monthly fall. Credit card lending rose by £0.1bn, but the annual growth rate fell to 8%.

In Q3 2007 new lending peaked at £102bn but this fell to £61bn in Q3 2008. From Q2 2008 to Q3 2008 new lending fell by a whopping 15%. Loans to borrowers with an impaired credit history represented 1.5% of new lending in Q3 2008, compared to 3.5% a year earlier.

Numbers of new possessions have grown significantly since Q3 2007, with 13,161 new cases in Q3 2008 – 92% higher than a year earlier.

While the number of new arrears cases had stayed constant at around 54,000 each quarter since early 2007, the results for Q3 2008 show an increase of 10% to 60,000 cases. At the end of Q3 2008 there were 340,000 loan accounts in arrears, an increase of 10% since Q2, 2008 and a rise of 24% on a year earlier.

The monthly total was 44% lower than gross mortgage lending of £33.4 billion in October 2007.

CML director general Michael Coogan said: “While lending in October ticked up from a low figure in the preceding month, the outlook is one of continuing weakness for housing and mortgage markets in the coming months, despite the Bank rate cuts in October and November.

“Consumer confidence is now being affected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing shortage of mortgage funding. The government should therefore publish the delayed Crosby review as part of the forthcoming pre-Budget report and announce concrete steps that will enable and encourage firms to increase mortgage loans.”

A 6.25% two year fixed rate has been introduced which is available for home purchases or remortgages up to a maximum of £200,000 and 75% loan to value, inclusive of a £999 arrangement fee.

A three year discounted rate offers 0.50% off The Society’s standard variable rate of 7.19%. It is available for remortgages and capital raising on mortgage free properties up to £250,000 and 75% loan to value.

Both products have no extended early repayment charge. With the two year fixed rate the basic valuation fee will be refunded on completion up to a maximum of £400. In addition to no basic valuation fee being payable, the three year discounted rate offers free legal fees via a nominated solicitor or £250 towards legal costs.

To compare mortgage deals follow the link.

The Mortgage Business, established in 1989, will be absorbed into BM Solutions under the leadership of recently appointed managing director Nigel Payne.

All TMB business must be in by August 22. Products such as TMB’s House to House and self-build range will now be offered by BM Solutions.

Enable Finance is sad to see TMB go as this will be a big loss to the mortgage borrower, however, we are please to confirm that we already have excellent relationships with BM Solutions.

Despite depressed mortgage news due to the credit crunch Enable Finance carry on finding mortgage deals, for their customers although due to the credit squeeze we are having to worker harder than ever before to help borrowers.