Wednesday 2 November 2016

Mortgage approvals hit three-month high


UK's housing market now considered to be more stable than ever before. It is continue to be booming.

The number of mortgages approved for house purchases bounced back and achieved a three-month high in September after falls in the summer, but lending remains below the levels recorded at the start of the year, figures from the Bank of England show.

A total of 62,932 house purchase loans worth £11.1bn were approved during the month, up from 60,984 in August, and higher than expected, but below the previous six-month average of 64,841.

Activity in the first three months of the year was boosted by a change to stamp duty rates on 1 April, which added a three percentage point surcharge to the tax on second homes. However, even after that deadline, more mortgages were granted than in September.

Mortgage rates have hit new record lows since the Bank of England cut the base rate to 0.25% in August, but agents have reported a fall in homes for sale since the UK vote for Brexit in June.

The figures suggest the market is starting to pick up after a lull in the immediate aftermath of the EU referendum.

The Bank reported an increase in the remortgage market, where borrowers may have decided to make the most of low rates and lock into deals.

The number of approvals for remortgaging in September rose to 42,440 – above the average of 41,882 recorded over the previous six months.



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