Mortgage approvals in February fell to their lowest levels for three months, according to a recent report.
A report produced by the British Bankers’ Association (BBA), revealed that the number of homeowners applying for a mortgage fell to its lowest figure since November 2016. The number of loans approved for house purchases in February had fallen to 42,613, a fall of 1,592 from January. However, the report indicates that gross mortgage lending is still far higher than 2016, showing an increase of 4.6%.
According to one analyst, Howard Archer of IHS Global Insight, the figures indicate that the housing market will slow down, and will come under increasing pressure in the next few months. Unsecured lending also increased during the period to February this year, with a 6.6% rise in consumer credit borrowing. The BBA report shows that the amount of lending relating to overdrafts had fallen, although credit card borrowing had increased.
The managing director for retail banking at BBA, Eric Leenders, stated that during the winter months, the level of approval for house purchases and re-mortgages had been elevated, but in February, they had reduced to the average number demonstrated throughout 2016. He added that the increased spending levels had been reflected by the increased use of consumer credit and personal loans.
Mortgage approvals will often fluctuate throughout a year and are affected by a number of factors, like the season and availability of mortgage deals. Mortgage advisers study on CeMAP courses so that they can offer professional advice to those who are looking for a mortgage deal.
