A new report from the Bank of England shows that approvals of loans for house purchases hit a 2015 high in August at over 71,000.
This was well up on the average over the previous six months of 65,594, and a small increase on July’s 69,010. The Bank’s Money and Credit report found also that remortgage approvals were up to almost 41,000, a rise of 14% on the six-month average.
Richard Sexton, director of e.surv chartered surveyors, said: “Since the General Election, house purchase lending has been growing steadily on a monthly basis – an indication of the building economic confidence and improving household finances widely reported. Sustained wage growth across the board is helping support home movers."
Sexton said that banks were making good progress in ensuring that loans were available to borrowers with small deposits.
“As house prices rise, we need to keep the bottom of the market alive,” he said. “Thankfully, banks are recognising the importance of this and the support is there, helped by the safeguards the MMR changes have brought in.”
Adrian Gill, director of Your Move and Reeds Rains estate agents, added: “Mortgage demand has been feeling the wind in its sails over the summer months, and loan approvals in August have cruised past previous monthly benchmarks to reach a 2015 high.
“The mortgage market has certainly cast off the anchor of regulatory changes, and it’s not just first-time buyers who are benefiting from these calmer waters. Remortgaging activity has been making considerable headway recently, as existing homeowners shore up their finances before the wind changes, and secure the best possible deals before an interest rate rise.”