According to data recently released by the Bank of England, the number of mortgage applications approved in June 2015 has increased by three per cent.
The total figure for
mortgages approved in June was £11.5 billion, with 66,582 mortgages being processed by the banks. This figure was far higher than the monthly average of 62,971. Re-mortgages also made the headlines as the number increased to 36,620 in comparison to the average of 33,759. Around £6 billion was spent on re-mortgages in June.
In addition to mortgages being on the increase, the bank report also indicated that more people are increasing their personal spending, with lending on credit cards increasing by £245 million in June, against the previous month when credit card loans increased by £240 million. Overdrafts and personal loans also increased, with an extra £976 million being approved by the bank. According to the chief UK and European economist from IHS Global Insight, Howard Archer, low interest rates and increased consumer confidence may have contributed to the higher levels of borrowing, although this could be a concern as people are prepared to increase borrowing to fund their spending.
Ultimately, a person’s level of borrowing could affect their mortgage application, which is why many people applying for a mortgage seek help from a mortgage adviser. To be fully conversant with the mortgage application process, an adviser should undergo CeMAP training.
The British Bankers’ Association stated that the increased number of re-mortgages could be due to customers moving to fixed rate options, in anticipation of interest rates increasing.