MortgagesOct 1 2018

Mortgage approvals rise to highest level this year

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Mortgage approvals rise to highest level this year

Mortgage approvals have increased to their highest levels this year, according to latest figures from the Bank of England.

In its latest money and credit report released today (1 October), the Bank reported the number of mortgages approved for house purchase had increased 2 per cent to 66,440 in August at a value of £12.5bn. This means approvals were up £200m on the figure reported in July.

Remortgage approvals saw even bigger growth, increasing from 44,795 in July to 53,125 in August, with values jumping from £8bn to £9.3bn.

Despite a rise in approvals, lending growth overall has dropped slightly with households borrowing an extra £2.9bn against their homes in August, down from £3bn in July.

This was reported to be the lowest monthly secured net lending since July 2016.  

Annual lending growth sat at 3.1 per cent in August, a slight drop on July’s 3.2 per cent figure but the Bank reported this rate remained modest compared to the pre-crisis period.

Kevin Roberts, director at Legal & General Mortgage Club, said activity within the mortgage market remained steady as borrowers continued to make the most of the products and choice currently available.

He added: "With over 5000 products on the market, it can be a lot for would-be borrowers to get their head around.

"Borrowers who are unsure of which products will best suit their individual needs should start by speaking to an adviser. These experts are perfectly placed to provide guidance throughout the home-buying journey by matching their clients’ needs with the right solutions."

rachel.addison@ft.com