The number of mortgages approved for house purchase increased to 66,440 in August, the highest level since January 2018, The Bank of England’s money and credit statistics has found.
This is despite approvals for house purchase remaining within a narrow range in recent years. The number of approvals for remortgaging – which could lead to an increase in gross lending and repayments, with little impact on net lending – increased to 53,125 in August.
This data has been volatile recently, and this was the highest since November 2017.
Kevin Roberts, director, Legal & General Mortgage Club, said: “Activity within the mortgage market remains steady as borrowers continue to make the most of the innovative products and widespread choice currently available.
“With over 5000 products on the market, it can be a lot for would-be borrowers to get their head around. Borrowers who are unsure of which products will best suit their individual needs should start by speaking to an advisor.
“These experts are perfectly placed to provide guidance throughout the home-buying journey by matching their clients’ needs with the right solutions.
“Simply knowing that an experienced advisor is on-hand to offer this kind of advice will provide countless potential borrowers with the much-needed reassurance they need.”
Households borrowed an extra £2.9bn secured against their homes in August. Net lending has been relatively stable over the past year or so, but this was the lowest monthly secured net lending since July 2016, and the annual growth rate ticked down to 3.1% in August.
It has now been around 3% since late 2016, and remains modest compared to the pre-crisis period.
Vikki Jefferies, proposition director at PRIMIS and PTFS, said: “Whilst the current growth rate for mortgage lending remains steady, it is still vital that brokers ensure the lines of communication with clients are kept open.
“Each month, more and more mortgage products are introduced to the market, and many of these are welcoming customers with non-traditional circumstances, such as self-employed and contract workers.
“As a result, brokers must ensure that aspiring borrowers are made aware of the various options available to them.
“At PRIMIS and PTFS achieving best customer outcomes is at the heart of what we do. We have undergone a significant amount of growth and are continually investing in our brokers to ensure they are able to deliver this to the widest possible group of consumers, whatever their circumstances may be.”