Mortgage approvals dip in June

Sam Cordon

July 29, 2013

Although approvals in June are still higher than the previous six month average, the figure does include a drop in remortgaging from 32,209 to 31,486

However, the total value of mortgages approved increased from £13.9bn in May to £14bn.

David Copland, director of mortgage services for the financial services division of LSL, said: “The figures released today by the Bank of England reflect a market that may have reached something of a plateau for this year however I do expect to see similar figures over the coming months.

“Funding for lending and the first phase of “Help to Buy” have given rise to an increase in new mortgage lending over the last few months and by the same token remortgaging had picked up.

“Over the past few months there has been speculation about interest rates and what may happen when the new governor of the Bank of England took the reins.

“However, recent comment from Mark Carney, regarding interest rates, confirmed the bank’s reluctance to increase interest rates for the foreseeable future.

“With interest rates staying low I see a continuation in the current situation regarding new mortgage lending but can’t see a marked difference in remortgaging over the second half of the year.”

The Bank of England’s figures come on the same day as the Building Society Association’s which revealed that mutals held a 24% market share of gross lending in the first half of 2013 and had lent £3.5bn in June.

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