Mortgage approvals rise

Latest figures from the Bank of England have revealed that mortgage approvals in January unexpectedly picked up.

The Bank announced that mortgage approvals increased to 74,000 last month, which is 2,000 more than in December.

Vicky Redwood, an economist at Capital Economics, said: "January''s household borrowing figures suggest that housing market activity has stabilised, at least temporarily."

Experts had predicted that the number would fall to 70,000 but the increase stops the
seven-month run of falls.

Last month''s figure was the lowest it has been since records began in 1999.

It is thought that the housing market will weaken this year as the credit crunch affects the financial climate in the country.

Other figures released from the Bank have revealed that the amount of money outstanding on mortgages in the UK is £1.19 trillion.

The Bank of England is the central bank of the UK and was nationalised in 1946.

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