Mortgage approvals continued a two-month slide in August, down to 64,212 from 66,100 in July and 66,923 in June.
August’s lending was also lower than the previous six months’ average of 65,738 approvals.
However Bank of England figures out today also show lending secured on dwellings increased by £2.3 billion in August, compared to the average monthly increase of £2.1 billion over the previous six months.
Mark Harris, chief executive of mortgage broker SPF Private Clients, comments:
“Fewer loans were approved for new purchases in August compared with the six-month average, but lending secured on dwellings ticked up by £2.3bn compared with the average monthly increase of £2.1bn.
“The number of people remortgaging also edged up slightly compared with the six-month average as borrowers took advantage of lenders cutting their fixed rates in an effort to drum up business before the end of the year.
“One would expect the mortgage market to slow down in August as it is traditionally a quiet time of year but as a business we had one of our best months, emphasising the continued strength of the mainstream London property market in particular.
“With Mark Carney stating last week that the first interest rate rise is getting closer, borrowers should not be complacent about low interest rates. While the governor of the Bank of England pledged that increases would be ‘limited and gradual’ borrowers must still plan ahead and ensure they can afford their mortgage now – and in the future.
“Five-year fixed rates in particular are good value and provide certainty for the medium-term.’
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