Mortgage activity in big fall, says MAB

Thursday 19th July 2012

Mortgage activity plummeted in June, says the Mortgage Advice Bureau.

The number of mortgage applications for house purchase fell by 19.4% on May’s figures, while remortgage applications tumbled by 30.5%. MAB only releases data to do with applications, not approvals.
 
Using data from more than 500 brokers and 800 estate agents, MAB says average deposits on purchase applications has risen, reaching £66,512 in June from £56,167 – an increase of 18.4% – and rates have increased again, reaching 4.72% for the average two-year fixed rate mortgage – up from 4.27% in January.
 
Brian Murphy, head of lending at MAB, said: “The June figures are down for the year, having peaked just a month before, and we expect this volatility to continue for the rest of the year.

“This suggests fewer people are able to secure mortgage finance, especially at the bottom end of the market.
 
“If we are to see a return to growth we need to see more flexibility and more good-quality borrowers getting access to mortgage funding.

“The impact of moving back into recession has made borrowers nervous and the weather has also played its part, but more needs to be done to help kick-start the property market.
 
“There is much pent-up demand from borrowers, and while we believe the ‘funding for lending’ scheme could have a positive impact, it needs lenders to take up the proposal, and they will first want to be comfortable there is no stigma attached with doing so.”