Mortgage approvals continued to recover in December after a temporary dip in October, the latest data from the Bank of England shows.
The number of approvals went up to 102,910 in December compared to 100,383 in November and 99,928 in October.
Approvals for house purchases increased to 60,275 from 58,956 in November, but were still below the six month average of 62,652.
Approvals in remortgaging totalled 32,912 in December last year, topping both the November figure (32,064) and the average from the last six months (31,924).
Mortgage lending increased very slightly in December, edging up by 0.1 per cent month-on-month to £1.297 billion, the Bank said. Compared to a year ago, December lending was 1.8 per cent higher.
Comment:
Richard Sexton, director of e.surv chartered surveyors, analysed BoE’s latest data by saying:
“The mortgage market is steadying out after a five month wobble. Compared to the opening half of 2014, lending in H2 was much more tempered – with around 34,000 fewer house purchase approvals completed. This was a side-effect of regulatory changes which were needed to make the market much healthier – immunising it against future ailments. Now the market is ship-shape and ready to move forwards.
“The stamp duty reforms have recharged goodwill in the market in the last month, as well as taking some of the pressure off borrowers building a deposit. With inflation low and interest rates remaining unchanged, mortgage rates are at an all-time low. This potent cocktail of cheap rates and stamp duty relief have helped push lending along in the run up to the General Election.”
David Whittaker, managing director of Mortgages for Business, said:
“…The mortgage market has continued on a mainly stable trajectory – going in the right direction but not taking off. Private renting will continue to dominate the housing market, and as an industry it needs all the investment and financial support it can get.”
Adrian Gill, director of Your Move and Reeds Rains estate agents, commented:
“After a momentary stumble, mortgage lending is climbing firmly back to its feet as we turn the corner into 2015. The introduction of more restrictive mortgage regulation in the autumn took the breath out of lending for a while, but as the market adjusts to these measures this stranglehold has been loosened. There was an encouraging December uptick in mortgage approvals, as borrowing is once more starting to build up speed.”
