Bank of England figures show new mortgage approvals have jumped to a nine-month high, drawing a cautious welcome from homeowners, lenders and estate agents.

With decreasing house prices and low mortgage rates tempting more newcomers on to the housing ladder, the data appears to be a good sign for the housing market.

Louise Cuming, head of mortgages at moneysupermarket.com, says that although there is still a long way to go before rates and asking prices reflect those seen two years ago, the site is seeing more activity among borrowers.

The fact that borrowers can "buy the peace of mind that comes with knowing they can afford a mortgage" is "fueling these early signs of recovery", according to Ms Cuming.

Recently the Council of Mortgage Lenders (CML) also welcomed the recent upturn in mortgage approvals, but stressed that more time was needed before it could be called a recovery as transactions "remain historically very weak".

Source: Direct News 1/4/09