Mortgage approvals at five year high
01/10/2013
The Bank of England has announced that the number of mortgage approvals hit a five-and-a-half-year-high in August.
Mortgage approvals rose to 62,226 in August from 60,914 in the previous month. However, these levels are still below both pre-recession and long-term averages. Samuel Tombs, UK economist at Capital economics noted that despite growth, the market is still relatively weak, stating that levels are “still 40% down on the levels seen before the financial crisis,” whilst he also noted that net mortgage lending in August had risen to £1 billion in comparison the average of £0.7 billion in the previous years.
These figures were announced following news that the second stage of the Help to Buy scheme was to be implemented three months earlier than originally planned, after the scheme which allows people to buy new homes with a 5% deposit was adjudged to be a success by the coalition government. However, the scheme will now allow people to buy existing homes under the same conditions.
Prime Minister David Cameron, rejected fears the Help to Buy scheme would fuel a housing bubble, claiming that the market was "recovering from a very low base" and first-time buyers needed help to get on the housing ladder.
Critics say the Help to Buy scheme does not address the issue of high demand for a limited supply of properties, prompting concerns about affordability, with the British Chamber of Commerce denouncing the decision to bring the second stage of the Help to Buy scheme as “less than responsible.”
If you feel this news affects you, or you feel unsure about your mortgage situation, our qualified financial advisers are on hand to answer any initial questions you might have free of charge within 60 minutes* during office hours.
Share this..
Related stories
Mortgages approvals fall in July, according to BBA
The British Bankers Association has revealed that the number of mortgage approvals fell in July from the previous month, as the availability of cheap lending for new homes was reduced. In total, there were 42,800 mortgage approvals in July, while June figures stood at 43,200. Despite this though, volumes were still up by 12 per cent in July, when compared to the same month last year. The B...
Read MoreIs the mortgage sector returning to reality?
At a time when mortgage lending in the UK has been "surprisingly strong" yesterday's announcement by the Skipton Building Society of a rewrite of 60,000 mortgage arrangements has not helped the industry. Overnight tens of thousands of mortgage holders in the UK will see their mortgage rate increase from 3.5% to 4.95% costing the average customer an additional £1,500 a year. Could this move cause...
Read MoreIs the mortgage market finally waking up?
It would appear, in one of the more quiet periods for the UK housing market, that mortgage lenders in the UK are now getting ready for a particularly competitive 2010. Over the last few days we have seen the likes of First Direct, Alliance & Leicester, Abbey and Cheltenham and Gloucester slash their rates on fixed mortgages with over 94 mortgage arrangements now offering rates below 4% as opposed...
Read MoreMortgage lending still under pressure
The Council of Mortgage Lenders (CML) has today revealed that new home loans increased by 7% in May to £11.3 billion. While the 7% increase on the April figure is obviously a move in the right direction it is still only 10% higher than May 2009 which perfectly illustrates the still subdued level of mortgage liquidity and mortgage agreements in the UK. So what next? The CML is growing more and...
Read MoreMortgage approvals rise in October
Recent figures relating to the UK mortgage market continue to cause confusion and scepticism in equal measures with October seeing a 5% increase in mortgage lending compared to September. The situation is complicated by a number of issues which include the fact that the stamp duty holiday is due to end, the winter period is traditionally a quiet time for the mortgage market and there are signs and...
Read More