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Bank of England points to rise in mortgage lending

Total mortgage lending rose to a six-month high of £1bn in August, according to the Bank of England, as economic conditions continue to improve slowly.

However, while the figure was stronger than forecast, indicating that the Bank's programme of quantitative easing is starting to take effect, the number of new mortgages fell from 52,404 approvals in July to 52,317 in August. This underlines the fact that mortgage finance is still difficult to obtain unless you have a significant deposit. And even if you can get a mortgage, there is still a lack of properties for sale, particularly family homes.

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