Mortgage approvals at eight month low

Ryan Fowler

May 27, 2014

This represents a drop of almost 3,000 from the 45,045 offered in March but approvals still remain 33,870 higher than they were a year ago.

Jonathan Harris, director of mortgage broker Anderson Harris, said: “With the BBA revealing that April saw the highest monthly total of new mortgages since August 2008, confidence continues in the housing market, with lenders also willing to lend.

“However, the actual number of mortgage approvals for house purchase was 42,173, down from 45,045 the previous month and below the six-month average of 45,720.

“This is not a market running away with itself. The introduction of the Mortgage Market Review may be having an effect: while it’s still early days, with many lenders introducing the new rules weeks ahead of the official launch, its’ impact may already be starting to be felt.

“Talk of interest rates rising continues, with Charlie Bean, the retiring deputy governor of the Bank of England saying at the weekend that they could rise to 3% in the next three to five years.

“While there is no need for borrowers to panic, it is important to consider whether you can afford any mortgage you take on and to opt for a fixed rate if you are concerned about budgeting.’

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