According to figures released by the Bank of England, the number of mortgage granted has shot up in 2015.
The number of approvals hit its highest level in July 2015 since February last year, an indication of a recovering housing market. The number of approved mortgages in July 2015 rose to 68,764, in comparison to just 59,100 in November 2014. As new regulations were introduced in 2014 with stricter affordability checks for mortgage applicants, the number of approvals fell, which had a knock-on effect on house prices. The recent figures are an indication that the housing market is beginning to pick up again, with the mortgage approval rates rising for five out of the seven previous months.
Mortgage lending increased by £2.709 billion in July 2015, the largest increase since 2008. According to the chief economist at IHS Global Insight, Howard Archer, one of the possible reasons for the upsurge is the likelihood of increases to mortgage interest rates. Buyers may be locking into low interest rate deals now before they begin to rise. He said:
“While we currently expect the Bank of England to first hike interest rates in February 2016, there is now a very real prospect that they could act before the end of 2015.”
For potential home buyers, getting appropriate advice is crucial so they can find the most suitable mortgage product at the most affordable rate. Mortgage advisers have been fully trained in all aspects of mortgage products, through the studying of a CeMAP Training course, and are able to guide buyers through the process.