June Sees an Increase in Mortgage Approvals

A few weeks ago we reported on the dip in mortgage approvals the market experienced in May. Today however the picture is very different. Lenders have granted a larger number of mortgage approvals for June 2014, seeing a rise of 8% in that month alone. While it is too early to say whether this is a real turning point, it certainly provides heartening news for those looking to get a mortgage approval of their own.Beating the analysts predictions Analysts had previously estimated we would see a rise in approvals in June. They forecast the amount would rise from the 61,707 seen in May to a slightly higher 62,600 in June. However reality bucked that trend, and Junes figures rounded out to a healthier 67,196 instead. Time to celebrate? Perhaps it is still a little early to determine whether this is the first step on the road back to recovery for mortgage approvals across the board. While these figures are encouraging they are still down on the highs of 76,214 seen in January this year. If figures continue to rise over the coming months we may expect to see the monthly totals approaching that high point. However Junes figures are still some 9,000 lower than Januarys. Are the mortgage companies settling into using the new mortgage rules? It seems as though this could be the case. It was accepted that the Mortgage Market Review would have an effect on the number of approvals granted, and this was certainly the case. The new rules have had the desired effect and many people have been refused for a mortgage or struggled to get one thanks to the new rules. Furthermore the Governor of the Bank of England, Mark Carney, has pointed to the housing market as posing a significant threat to the ongoing economic recovery in the UK today. Indeed those with economic experience and knowledge will be watching the monthly mortgage approval figures closely. A rise such as the one we have seen this month may indicate the new measures have only slowed the activity in the housing market. Other problems are brewing elsewhere in the housing market In additional news some people are clearly finding housing prices too expensive for their tastes. Indeed Hometrack has reported it can now take double the length of time to sell a property in London as it did earlier in the year. In addition some asking prices are now beginning to fall. Record prices are presenting a huge problem for many people looking to get on the housing ladder or move up to a second property. If prices are too high people will be unable to afford them and this will be represented in fewer mortgage approvals as people are turned down for the higher mortgages they would need to buy them. We shall be watching to witness the ups and downs we shall no doubt see in the coming months. Will mortgage approvals increase still further in July? – See more at: https://themortgagebroker.co.uk/june-sees-an-increase-in-mortgage-approvals/#sthash.g8cyCfFc.dpuf

Published on 3 August 2014

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