Home loans reach 10-month high

Mortgage approvals soared to a 10-month high in April, as the burgeoning economy continues to boost confidence.

A total of 42,116 mortgages for house purchase were rubber-stamped by high street banks during the month, according to figures released by the British Bankers' Association (BBA), worth around £7 billion.

It is the largest number of approvals seen since June last year, while there was also a significant jump in the amount of money that savers put in their bank accounts.

The report suggests people are growing in confidence when it comes to taking on personal loan and credit card debt, plus business lending may have reached a turning point as the economic outlook improves.

Chief economist at the BBA Richard Woolhouse says consumers and businesses have started to put their foot on the gas.

He claims broad confidence about the economy has led to banks offering more affordable credit to first-time buyers and movers wanting to get on or move up the property ladder.

Copyright Press Association 2015