June sees increase in the number of mortgages approved

The Bank of England has revealed that, in June, the number of UK mortgage approvals increased for the first time since January.

The rise indicates that mortgage lenders are beginning to see business returning to normal levels, after new regulations led to a reduction in approvals earlier in 2014.

Mortgage approvals rose by eight percent in June, reaching a total of 67,196. A smaller increase was forecast that would have taken the total to around 62,600. Some economists think that the large June increase contradicts the signs of a slowing property market that have recently been observed.

IHS Global Insight economist Howard Archer said that the June upsurge in mortgage approvals was causing uncertainty about the housing market’s recent cooling, sowing doubt about whether the slowing will last or whether it is just a temporary phenomenon.

Monthly mortgage approval figures are still well below the level of 90,000 which was seen before the economic crisis began in 2008. They are also lower than they were in January this year, when they reached 76,000. The Bank of England has been attempting to slow the mortgage market since the beginning of 2014, when it transferred funding away from mortgages to businesses. It also introduced tougher checks in April to ensure borrowers could afford their loans.

As uncertainty continues to surround the mortgage market and would-be borrowers are finding it difficult to secure loans, more people across the UK have been considering taking a CeMAP training course in order to qualify as a professional mortgage adviser.



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