Mortgage activity 10% lower than last year

Jessica Nangle

November 24, 2016

Mortgage approvals were 10% lower in October 2016 than the same month last year, the BBA’s High Street Banking Statistics show.

In the first 10 months of 2016 approvals were 4% lower than in 2015, though net mortgage borrowing was 2.5% higher than the equivalent period last year.

Remortgage activity is still going strong however, as approvals were 13% higher in the first 10 months of the year than last year and broadly flat in October.

Mortgage lending dipped last decade after 2007 crash

Comparatively house purchase approvals were 10% lower than October 2015 and 4% lower for the first 10 months of the year.

Dr Rebecca Harding, chief economist at the BBA, said: “Mortgage approvals ticked up a little October.

“There has only been a relatively modest increase in activity since the Bank of England cut rates in August.”

Matt Andrews, managing director of Bluestone Mortgages, said:  “Fewer approvals and the continuing squeeze on affordability is pricing an increasing number of would-be homeowners out of the market.

“The UK workforce is changing – contractors have grown by 35% in the past three years alone.

“If more lenders were to offer a more personalised underwriting experience, working to understand the factors behind an individual’s circumstances, we would see an increasing number of hopeful buyers achieve their goal of homeownership.”

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