0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter

Mortgage approvals hit a 13-year peak

Mortgage approvals for house purchase reached their highest for 13 years during August, according to Bank of England data.

Share on LinkedInShare on TwittereCard

Approvals surged to 84,700 against a forecast of 73,000, as a flurry of activity and offers among movers raised the total to its highest peak since October 2007. Remortgage approvals remained relatively flat compared to July at 33,400.

 

But the increase of mortgage approvals to 30% compared to July chimes with other data showing a nascent recovery in the market, with Halifax and Nationwide recently showing rises in average house prices to a record level.

 

Hugh Wade-Jones, managing director of Enness Global Mortgages, the mortgage broker, said: “Despite a reduction in the availability of high loan-to-value products, we’re yet to see the level of mortgages approvals tail off due to overwhelming levels of buyer demand.

 

"Homebuyers at all price tiers are digging deep to come up with a larger deposit to secure a stamp duty saving, and although many lenders may be treading with caution, they continue to make hay while the sun shines."

 

Marc von Grundherr, director of estate agent Benham and Reeves, said: “We’ve seen little to no let-up in the volume of homebuyers hitting the market despite a tightening of finance options available.

 

“Where they may have been traditionally buying with a 15% to 20% deposit, they’re now stretching to as much as 30%. They are doing so to not only to take advantage of the favourable rates currently on offer but to secure a stamp duty saving in the process.

 

“Since the stamp duty holiday was announced, the number of mortgage approvals seen on a monthly basis has more than doubled, and so the boost it has given the market cannot be underestimated.”

 

The effect of the stamp duty holiday and pent-up demand across the mortgage market will be key themes at FSE-Week and the Lending Summit, in November.

 

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Upcoming events


Credit Summit


Credit Awards


FSE - Week

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group