The number of mortgages approved by British banks rose modestly in September following a 19-month low in August, new figures show. According to the British Bankers’ Association, 38,252 mortgages were approved in September, up from 37,241 in August. Housing market activity has slowed following a surge in the first quarter after borrowers brought forward transactions […]
The number of mortgages approved by British banks rose modestly in September following a 19-month low in August, new figures show.
According to the British Bankers’ Association, 38,252 mortgages were approved in September, up from 37,241 in August.
Housing market activity has slowed following a surge in the first quarter after borrowers brought forward transactions to beat the 1 April stamp duty deadline on buy-to-let and second homes.
Uncertainty over the impact of the EU referendum has also caused many buyers to adopt a more cautious approach and put off purchases.
Overall mortgage lending was 2% lower than a year ago at £12 billion, while remortgaging approvals were 15% higher than in September 2015.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The drop in purchase activity year-on-year is no real surprise. Confidence is lower, there is still uncertainty about what the future holds and when people are uncertain they will defer decisions. Buying a house is a big transaction in anyone’s eyes and people are delaying that decision until they are happy that they are making the right one.
“The remortgage market is fairly robust but what isn’t reported in those numbers is product transfers. It has been suggested that this market is worth as much as £100 billion a year. Whereas there wasn’t really a product transfer market ten years ago, lenders are now paying more attention to their traditional clients and encouraging them to switch products but maybe not provider.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: ‘This year is fast becoming one of two halves as we are seeing a succession of figures demonstrating growing uncertainty since the referendum vote in June. The market has not collapsed but on the ground we are seeing that the outcome and its aftermath is certainly making buyers and those considering remortgaging think twice before making decisions.
“Needless to say, resilience is very much to the core and pragmatic buyers and sellers are still achieving most of their aims.”
