2017 a record year for successful mortgage applications

September 3, 2017 by Brendan

Property Market

According to a report compiled by the Intermediary Mortgage Lenders Association, a record number of mortgage applications have been successful during the second quarter of this year.

The report indicates that nearly 90% of mortgage applications submitted through an intermediary were approved. The number of applications leading to an offer being made by the lender has increased by 13% year on year, reaching 88%. This is the highest figure to be recorded since the start of 2016, when IMLA launched its mortgage tracker. The record number of approvals have occurred when the quarter has demonstrated gross mortgage lending of £60.3bn.

The report, which is compiled on a quarterly basis, also shows that 96% of intermediaries feel optimism for the future of the property market, and believe that the current trend may continue into the future. The figures are also good news for first-time buyers, who have benefited from greater lender support and historic low interest rates on offer. Despite issues with affordability, the number of mortgage offers made to first-time buyers has increased by 17%, to reach 88% during the second quarter.

The executive director of IMLA, Peter Williams, said that potential home owners and the mortgage market have remained on course, despite political uncertainty. He added that the rising numbers of successful mortgage applications is an indication of the ability demonstrated by intermediaries, like CeMAP qualified mortgage advisors, to match clients to suitable products in a complex situation. The slowing down of house price increases was one of the factors responsible for this shift, according to Williams.