The number of mortgage approvals fell in April following inflated lending activity as a result of buyers rushing to beat the stamp duty deadline, new figures show. According to the British Bankers’ Association, there were 40,104 mortgages approved for house purchase in April, down from 43,854 in March following increased activity from borrowers completing purchases […]
The number of mortgage approvals fell in April following inflated lending activity as a result of buyers rushing to beat the stamp duty deadline, new figures show.
According to the British Bankers’ Association, there were 40,104 mortgages approved for house purchase in April, down from 43,854 in March following increased activity from borrowers completing purchases ahead of the increase in stamp duty.
Dr Rebecca Harding, BBA chief economic adviser, said: “As expected, growth in mortgage lending has fallen back sharply on last month proving that March’s results were just a stamp-duty spike. Net mortgage borrowing is nevertheless 3% higher than a year ago.”
Gross mortgage borrowing was £12.2 billion in April, down from £17.1 billion in March, but 12% higher than a year ago.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘The lending market is inevitably more subdued following last month’s flurry of activity as investors and second homebuyers rushed to beat the stamp duty hike. However, April’s net borrowing was still 3 per cent higher than a year ago when the market was largely paralysed by the uncertainty surrounding the general election. This year it’s the turn of the EU referendum to create uncertainty and give investors the jitters.
“However, the referendum can’t be wholly blamed for the perceived slow down. More importantly, general confidence in the economy, both domestically and globally, as a whole has fallen. Activity at the top end of the market is muted as it comes to terms with higher stamp duty.
“Remortgaging goes from strength to strength, as some borrowers worry that interest rates will start to edge higher and are choosing to lock in to some fantastic rates. There are some excellent deals available and lenders remain keen to lend so there are likely to be plenty of options for borrowers in coming months, assuming they meet tighter affordability criteria.”
