Lenders approved the lowest number of mortgages in six months in March, the Bank of England reported today (4 May).
The Bank of England reported the number of approvals of mortgages for house purchases fell to 66,837.
In year-on-year terms, the increase in mortgage lending was the weakest since November 2015.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "March saw a very slight dip in approvals for loans for house purchase and remortgaging, suggesting the market is ticking along, buoyed by lenders offering rock-bottom rates.
"With HSBC launching the cheapest five-year fix on the market at 1.69 per cent yesterday (3 May) and Yorkshire Building Society introducing a record low two-year discounted rate at just 0.89 per cent, the market is more competitive than ever.
"It is a good time for borrowers, with lenders keen to attract business from first-time buyers, home movers and those remortgaging.
"However, affordability criteria remains tight and good advice is more important than ever."
| Number of approvals, split by lender and purpose | | | | |
| | | |
| | | House | | Remortgaging | | | | |
| | | purchase | | | | | | |
| 2017 Jan | | 68,760 | | 45,783 | | | | |
| Feb | | 67,936 | | 43,740 | | | | |
| Mar | | 66,837 | | 42,814 | | | | |
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Today’s figures showing a slight drop in mortgage approvals highlights the need for more support for first-time buyers, and indeed home movers, across the country.
“Recent research from Legal & General has found that the Bank of Mum and Dad is now responsible for more than a quarter of all UK property transactions – but this support is simply not sustainable.
“As the market gears itself up for another general election, it is vital that the housing agenda isn’t kicked into the long grass. It is paramount that a plan to address the nation’s severe lack of housing supply features on the manifesto of every party.”
emma.hughes@ft.com
