New figures from the Bank of England have revealed that UK mortgage approvals hit a three-month high in November.
The Bank’s Money and Credit report showed that net mortgage lending rose £3.9 billion in November, compared to the average monthly increase of £3.1 billion over the previous six months. The three-month annualised and twelve-month growth rates were 3.5% and 2.5% respectively.
The number of loan approvals for house purchases was higher than expected at 70,410 in November, compared to an average of 68,428 over the previous six months.
Remortgaging approval numbers hit 39,161, in line with the average over the previous six months.
Brian Murphy, head of lending at Mortgage Advice Bureau, said that the increase in mortgage approvals showed there was “no sign of a winter slowdown”.
“Approvals now stand significantly higher than they did in November 2014, driven by strong growth in lending to both homebuyers and existing homeowners. Activity has also been encouraged by record low mortgage rates, which make monthly payments more affordable.
“Lenders’ appetite for new business grew significantly over the course of 2015, and this is expected to continue into 2016. This means those who meet affordability criteria will continue to enjoy the excellent deals available in the marketplace. However, overall housing supply continues to be constrained, and it is important that housebuilding targets are met in order to ensure an inclusive market.”
Richard Sexton, director of chartered surveyor e.surv, said: “Mortgage lending remains stable as it continues to benefit from the improving economic climate. Overall lending in November was up by circa 3% compared to the previous 6 months, with remortgaging levels delivering a healthy contribution to the total.
“For first-time buyers, 2016 may bring both opportunities and hurdles. Those looking to get on to the property ladder should be encouraged by consistent lending levels, but small deposit borrowers need to remain a priority for lenders. A stable market and measures such as the Mortgage Market Review and Help to Buy continue to play their part – however increases in house prices and any upward movement in interest rates later in the year would create challenges particularly for the first-time buyer sector.”
Nationwide said last week that house prices in December were higher than expected and that next year growth will be between 3% and 6%. According to the society, average annual house price growth in 2015 was 4.5%.
Figures from Halifax have revealed that in the first eight months of 2015 the number of house sales across England and Wales fell 8% compared with 2014 to 549,639.
