The Bank of England has reported a rise in mortgage approvals.

The official figures suggest that mortgage approvals increased to the highest level in four months in April.

April saw the UK Banks granting 49,871 mortgages, an increase on the 49,008 approved in March. The figures beat the predictions of economists and are the highest since December of 2009.

Low interest rates are being sighted as the reason for people being able to get onto the property ladder. However, the number of mortgages being approved is still around the 50% mark of the October 2007 boom. November last year saw figures reach 59,531, so it is evident that we still have some way to go.

Although more mortgage products are coming onto the market, it is still a struggle for most still coming out of the recession.

Lloyds Banking Group have reported that twice as many people made overpayments to their variable mortgages in 2009 than in 2008.

According to the figures, 14% of Lloyds Banking Group customers paid more than the minimum amount towards their mortgage in 2009.

Lloyds Banking Group have said that due to historically low interest rates, they have seen a large rise in mortgage overpayments. Those who have a variable rate mortgage have greatly benefited from the low interest rates and have subsequently opted to overpay – decreasing their mortgage.

Individuals with a £100,000 mortgage have seen monthly repayments drop by around £275 as the base rate fell from 5% to the record low of 0.5%. Working on this basis, an overpayment of just £50 on a 3.5% interest rate could work out as a saving of £7,500. Another way of looking at this is that by making this small overpayment you could reduce your 100,000 mortgage term by three and a half years.

With the Bank of England holding the base rate so low, borrowers are seeing the opportunity to cash in, reducing their overall loan and making significant savings in the long term.

According to Nationwide, UK house prices are now less than 10% short of what they were back in the boom of October 2007.

House prices are being pushed up by a lack of properties available and last month saw prices rise by 0.5%.

April saw a rise of 1.1% and March an increase of 1%, despite very little overall activity within the housing market.

The slow but steady increased means that the average house price now stands at £169,162, just 9.5% below the peak of October 2007.

February 2009 saw the lowest house prices, sitting at 19.3% below the prices of October 2007. Since then, they have risen 12.2%.

Although more sellers are returning to the market, transactions volumes are still thin on the ground. The rate of growth dipped to 9.8% in May, down from April’s 10.5% and this has caused house prices to increase.

‘Supply and Demand’ is still relatively steady with some small growth. It has been suggested that this is due to Home Information Packs (HIPs) being removed from the buying process, and tempting more buyers to the market.

However, the Bank of England is under considerable pressure to increase the base rate, due to rising inflation. If this happens then interest rates will rise and activity within the housing market will slow down.

Many people are holding back on making big financial decisions like buying a house until the new Government announces it plans in an Emergency Budget on June 22. Until then, it is anyone’s guess as to which way the housing market is going to go.

Twenty one of the leading providers of shared ownership and affordable homes have come together to ensure that the new coalition government maintains spending.

With shared ownership giving so many people the chance to get onto the property ladder, the 21 leading housing associations have written to the new Chief Secretary to the Treasury, David Laws, and the new Housing Minister, Grant Shapps. They are urging the new government to recognise the role that shared ownership now plays in the housing market and the value for money that it offers.

In recent years we have seen the highest house prices on record and severe cuts in public spending, but all the time shared ownership has remained as a viable and affordable option for those who want to enter the property market.

The new coalition government have indicated in a policy document last week that they intend to promote shared ownership housing. The proof will be in the pudding and their commitment to funding.

House prices for many will stay out of reach and so shared ownership really is the only option for many wanting to get onto the property ladder and so funding is paramount. Affordable housing is greatly needed and shared ownership is going to help to bridge the gap between those in need and finding suitable accommodation.

According to a recent study into mortgage lending during the first quarter of 2010, mortgage brokers accounted for 62% of all property loans.

First time buyers seem to the biggest group looking to mortgage brokers for advice on the right product for them, with 71% of first time buyer loans coming from intermediaries.

Mortgage brokers have been very important to homemovers and remortgagers, bringing 57% of all homeowner loans to the market and 64% of remortgages by value.

Many mortgage brokers lost out during 2009 when lenders sought to offer product strictly through branches, but the recent statistics show that brokers are a vital and value channel for all. This is not just the case for borrowers who want to know what the whole market has to offer but is also key to lenders, offering them an effective route to market.

The study shows that people want advice and someone who can give them a good over view of the market and explain what will really suit their needs. The mortgage market is a frightening place for many, especially for first time buyers, so it is not completely unsurprising that they are looking to experts for help.