Mortgage approvals at three-month high

November 9, 2016 by Brendan

Property Market

Data released by the Bank of England shows that the number of mortgages approved has increased slightly, resulting in September reaching the highest levels for three months. However, the data indicates that figures are still lower than the figures recorded at the start of 2016.

During September, £11.1 billion was approved for residential mortgages, with 62,932 house purchase loans provided. In August, the figure was 60,984, while the average during the last six months was 64,841. The increase to the stamp duty rates had an impact on the start of the year, causing house purchases to rise. However, even after the 1st April when the new rules were in place, the number of mortgage approvals was still higher than September’s figures.

Estate agents have recorded a drop in homes being placed on the market since the EU referendum in June this year, despite mortgage interest rates being at their lowest since August, when the Bank of England cut the base rate.

The data suggests that the housing market is starting to improve following a slow down in the period immediately after the referendum. The report produced by the Bank of England indicates that more home owners have locked into new, lower rate deals, as the number of re-mortgages has increased. The number of re-mortgages during September increased to 42,440, higher than the average for the last six months of 41,882.

CeMAP qualified mortgage advisers are able to advise existing home owners and first time buyers of specific deals which may suit their requirements.