By Mick Eccles

Monthly house price inflation grew 0.9 per cent in January, bringing the average house price in England and Wales to 174,827, official figures show.

Since January 2006, the average house price has gone up 7.7 per cent and is the first time since May 2005 that annual price growth of greater than seven per cent over two consecutive months has occurred, according to the Land Registry.

Over the course of the year, the price of detached properties rose 8.4 per cent, while semi-detached and terraced homes both saw above-average price hikes of 7.9 per cent. However, flats and maisonettes saw below-average rises of 6.6 per cent each.

The data also reveals that annual growth in London is well above the national average and was at 9.9 per cent in January.

"London can be seen along side Yorkshire and the Humber and the south-east as the most consistent drivers behind recent national house price growth," the Land Registry stated.

According to Hometrack, house prices went up 0.7 per cent in February, with the average house price in England and Wales rising to 172,000.

Revised figures from the British Bankers' Association (BBA) have revealed that gross mortgage lending in January rose significantly over the year, although it was down on December's data.

The findings show that gross lending totalled 16.6 billion in January, which is 15 per cent more than the previous January figure of 14.5 billion. However, the figure was much lower than the 18.1 billion reported in December.

Underlying net mortgage lending grew by 5.6 billion, compared with December's increase of 5.7 billion. Annual growth in net mortgage lending now stands at 14 per cent.

David Dooks, BBA director of statistics, said: "January saw a continued stable demand for mortgages. Actual borrowing on mortgages remains strong compared with this time last year, so the impact of higher interest rates has yet to feature."

The figures also show there was an underlying total of 141,200 mortgage approvals, with the average loan approved for house purchase valued at 146,700 16 per cent higher than a year earlier.

According to the Council of Mortgage Lenders, gross lending hit a record January high of 26.8 billion, which is a rise of 16 per cent on the previous January figure of 23 billion.

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By John Samuels

A mortgage loan used to buy land instead of a structural building is called land mortgage. The intention of the buyer is to develop the cleared area or they can build a structure on that area as well.

A bank's point of view of land mortgage is however entirely different from a structure mortgage for the simple reason that land is considered as a less secured investment. This is because the land is left empty handed if default is done on an area as it is much tougher to resell this resource. Banks sometimes ask for a higher down payment in the case of a land mortgage of the sale price so that the buyer's substantial share of equity is ensured in the purchased land. In some cases, the borrower has to show property at other locations in support of a land mortgage. It is also assumed that in a land mortgage additional things will be done on a particular area or property so that the property can fetch some returns for the owner. Sometimes, the banks inspect the property and also ask for certificates so that he is not at risk if a structure is built on it. It's the banks duty to ensure that water, sewerage and other facilities are also made available on the particular property. Suppose the buyer is not able to provide the required certificates than the land mortgage doesn't take place. Since open land can call for certain liabilities such as people getting injured can ask for damages, therefore the bank might ask for fencing of the property in order to restrain the trespassers from entering the property.

The main advantages of a land mortgage are that an open property is cheaper than a property with a structure hence remarkable investments are required to get the property usable. A person purchasing an open property can build a structure as per his desire. In case a person decides to purchase a property merely for an investment than it is easier to purchase in cash instead of settling for a land mortgage. Land which is to be used for agriculture is also purchased in cash as the returns from land aren't very high so the land mortgage can be justified. Organizations buying this resource to keep open space and parks are also forced to do purchase by cash as banks are reluctant to mortgage land which is to be left bare.

These kinds of loans are easier to get for people who have good credit but it is almost impossible for those with bad credit. Most banks do give such mortgage if you are able to show them some kind of plan which will generate revenue for the property.

There are various land mortgage loans available with banks so finding the perfect one for your requirements should not be a difficult procedure so long as you have the proof and the required certificates at the time of inspection.

If you are thinking about buying a home, taking out a mortgage or even just checking the health of your current mortgage, then a home loan comparison at http://www.yourmortgage.com.au can help you find the best deal.