Increased mortgage lending "is very good news"

The increased mortgage lending in July recorded by the Bank of England (BoE) has been described as "very good news".

According to Katie Tucker, technical manager at broker firm Mortgageforce, a revival in mortgage lending is "absolutely pivotal" to the recovery of the country's property market.

The BoE data showed that the number of loan approvals for house purchases stood at 50,123 in July, while remortgages totalled 35,206.

This was the highest level recorded for over a year.

Ms Tucker said that lending by banks and building societies has risen back up to nearly half the level it was in July 2007.

However, the expert went on to state: "Most specialist lenders have moved into other businesses or closed down altogether, so we would be wrong to expect the housing market to return to its former health without a long fight."

A whole section of mortgage funding continues to struggle for a "resurrection", she added.