Mortgage approvals jump 10pc
The number of approved mortgages rose from 104,556 in March to 114,628 in April – the biggest rise in two years – hitting £17.8bn.
Peter Williams, executive director of the Intermediary Mortgage Lenders Association, said: ““Today’s Bank of England data shows the mortgage market finally hit the accelerator in April with the highest number of loans approved since February 2014.
“Lenders have been forced to batten down the hatches over the last year to adapt to new regulations.
“With the Mortgage Credit Directive on the horizon, we are still caught in the eye of the regulatory storm – so it is reassuring to see that more people are being approved for loans than at any point since the Mortgage Market Review rules took effect.”
The value of remortgaging over the same period also rose from £5.6bn to £5.9bn in April with remortgage approvals jumping from 33,022 to 35,930 in March.
Williams said: “In particular, the rush of remortgaging proves that existing borrowers are still able to switch loan under the new affordability regime.
“Lenders are working hard behind the scenes to prepare the ground for the MCD and ensure the transition is as smooth as can be hoped for in practice, so there is every prospect for modest but sustained growth in the second half of this year.”
Richard Pike, Phoebus Software sales and marketing director, added: “After a few months of a fairly stagnant market the figures announced this morning are very encouraging.
“Many predicted the lull before the election but it appears as though there were other factors that encouraged people to move or get onto the property ladder even before election uncertainty was removed.
“With all things considered – stamp duty, help-to-buy, low interest rates, higher loan-to-values and lenders once again willing to lend – the market is ripe for growth. If further predictions for the year are to be believed then we are now in for a more buoyant period, which seems most likely.”