The latest data reported by the Bank of England (BoE) shows that there was a sharp drop in the net mortgage borrowing figure for June, compared with that of the month before.
The net mortgage borrowing total for last month was £5.3 billion, whereas it was £8 billion for May. However, the BoE has made the point that the total for June is still higher than the average for the 12 months up until the Covid-19 pandemic began, with the figure for that period being £4.3 billion.
There was also a month-on-month fall in the total number of mortgage approvals during June. The figure for the month was 63,700, whereas for May it was 65,700. When it comes to approvals for remortgages, the total for June fell to 44,000, from 47,200 the month before.
Both mortgage and remortgage approval levels are below the average for the year up until the pandemic, according to BoE data. In that period, they stood at 66,700 for mortgages and 49,500 for remortgages.
The Chief Commercial Officer for Gatehouse Bank, Paul Stockwell, stated that the drop in both borrowing and approvals totals during June was unsurprising given rises in rates, inflation and cost of living increases.
Stockwell then went on to say that the summer is a period that traditionally sees the mortgage market slow, and that the end of the holiday on stamp duty had also contributed to the drop.
There is plenty of evidence that the market is healthy, with demand for CeMAP mortgage advisor training remaining high.