While December saw lenders approve a total of over 35,000 mortgage loans to complete house purchases during the closing month of 2014, this figure is the lowest seen since the April of 2013.
The data released by the British Bankers Association highlighted the ‘cooling’ of the market towards the end of last year, when the figure dropped from over 36,650 in November, which was down more than a quarter when compared against the November in the previous year.
It is important to note though, that even with the drop in figures, an overview of 2014 revealed how there were actually almost 10% more mortgage approvals than in 2013, but still around 50% fewer than the 2002 peak.
The chief economist for IHS Global Insight, Howard Archer, said that he believes this year will see a growth in house prices of around 5%, but the actual activity that will be seen within the housing market will be more limited.
Speaking further, he commented:
“Significant restraint on house buyer interest and prices is still expected to come from more stretched house prices to earnings ratios, tighter checking of prospective mortgage borrowers by lenders and the prospect that interest rates will eventually start to rise in late-2015 or early-2016.”
As a qualified mortgage professional who has undertaken the CeMAP training and passed the end exam, your role is a vital part of your customer mortgage journey, from when they begin looking for a property until the day they complete.