Mortgage approvals reach five-year high - Mortgages - News - Moneyfacts

News

Mortgage approvals reach five-year high

Mortgage approvals reach five-year high

Category: Mortgages

Updated: 30/09/2013
First Published: 30/09/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Figures released by the Bank of England show that the number of mortgage approvals rose to 62,226 in August, the highest level recorded since February 2008.

However, analysts have pointed out that lending volumes are still well below both pre-crisis levels and long-term averages, and that despite recent talk of a housing bubble any activity in the market is still relatively weak.

Samuel Tombs, UK economist for Capital Economics, said, "Although this took the level of approvals to its highest level since February 2008, they are still around 40% down on the levels seen before the financial crisis".

These figures come at a time when David Cameron has just announced that the second phase of the Help to Buy scheme would be implemented three months sooner than expected.

In light of this, David Tinsley, UK economist at BNP Paribas, believes that mortgage figures will continue to rise over the coming months. "By the end of the year approvals could comfortably be in the 70 to 75,000 range", he said.

Critics warn that heightened demand for a limited supply of properties could push prices up further.

What Next?

Compare the best mortgage deals with our whole of market search

Speak with an impartial Which? mortgage adviser for help on choosing the right mortgage for you

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close