May sees 14-month high in mortgage approvals

July 6, 2015 by Brendan

Lenders

The month of May has seen the highest rise in the volume of mortgages being approved since March 2014.

Some feel these figures indicate a

rising confidence within the housing market. May saw over 70,000 loans approved by high street lenders; a stark contrast to the 20-month low of around 60,000 5 months previously in December of 2014.

The information released by the British Bankers Association (BBA) also revealed an increase in the typical amount borrowed, from just under £160,000 a couple of years ago to just under £170,000.

Chief Economist Howard Archer from IHS Global Insight said that he felt this increase would continue, and after looking at various surveys that had been conducted, there were clearly a growing number of people looking to take out a mortgage to complete their house purchase. He added:

“Meanwhile, a shortage of properties coming on to the market is currently exerting increasing upward pressure on house prices.”

Richard Woolhouse who is the BBA’s Chief Economist said:

“The increase in mortgage approvals this month is consistent with the trend we’ve seen since the start of the year.”

As a mortgage adviser who has qualified after passing the exam at the end of the CeMAP training, you will be able to meet with customers and advise them of the most suitable mortgage package, having completed an affordability assessment. You will work within the rules and regulations set by the Financial Conduct Authority (FCA) and your employer.