Home buyer mortgages hit two-year high

The number of mortgages approved for house purchase rose to its highest level for nearly two years during October as buyers continued to return to the market, figures showed today.

Around 42,238 loans were approved for people buying a property during the month, nearly double the number seen in October last year and the highest level since January 2008, according to the British Bankers' Association.

Net lending, which strips out redemptions and repayments, also held firm at £3.1bn.

But unsecured lending remained subdued as consumers instead focused on paying down their debts and building up savings.