Home loan approvals in the UK are on the up but remain some way below figures for last year, new data has revealed.
Statistics from the Council of Mortgage Lenders (CML) show 39,900 home buying loans, worth £5.5 billion, were approved in October - a 14 per cent rise in terms of volume from September and a 10 per cent increase in value increase.
But compared to the number of approved mortgages this time last year, it represents a fall of 52 per cent in volume and 57 per cent in value.
Michael Coogan, CMLs director general, said: "We believe the government urgently needs to review the cumulative effect of the approach it has taken in the recapitalisation process on large lenders willingness and capacity to lend ."
"Ultimately, the response of each lender - whether on commitments to follow base rate moves or to finance new business in the future - will depend on its access to, and the price, of its funding."
Coogan added problems were being caused because banks face too much pressure in different areas, including keeping savings rates high, and being lenient with borrowers who are behind on repayments .






