Mortgages  

Mortgage approvals continue increasing: BOE

Mortgage approvals continue increasing: BOE

New data has revealed that the number of mortgage approvals increased last month, while mortgage lending also outpaced the six-month average.

According to the Bank of England, lending secured on dwellings increased by £2.6bn in June, compared to the average monthly increase of £2bn over the previous six months.

The three-month annualised and 12-month growth rates were 2.2 per cent and 1.9 per cent respectively.

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Gross lending secured on dwellings was £18.4bn and repayments were £15.9bn.

The data also showed that the number of loan approvals for house purchase was 66,582 in June, compared to the average of 62,971 over the previous six months.

Meanwhile the number of approvals for remortgaging was 36,620, compared to the average of 33,759 over the previous six months.

The number of approvals for “other purposes” was 10,800, compared to the average of 9,918 over the previous six months.

Jonathan Harris, director of mortgage broker Anderson Harris, said that the data reveals a “consistently improving” mortgage market, with a greater number of loan approvals for house purchase compared to the average over the previous six months.

Richard Pike, Phoebus Software sales and marketing director, added that they have started to see a small increase in the number of approvals for remortgages affected by post credit crisis lending policy and restrictions.

“However, with the market expecting rate rises in 2016, borrowers may be looking to secure low fixed rates and we may see a real resurgence in remortgaging in the coming months as people try to secure long term affordability and, ultimately, some peace of mind.”

donia.o’loughlin@ft.com