Mortgage approvals rose again in October following last month’s dip, the latest figures from the Bank of England have revealed.
The data showed that mortgage approvals for house purchases was 69,630 in October, higher than the average of 68,099 over the previous six months. This is up from 59,423 in October last year and 69,012 in September.
The number of approvals for remortgaging was 39,629, down from 40,985 in September
The total number of mortgage loans was £19.7 billion, 10% lower than the £21.8 billion estimated by the Council of Mortgage Lenders earlier this month.
Peter Rollings, CEO of Marsh & Parsons, said that the recent announcement by George Osborne to curb the buy-to-let market could lead to an increase in mortgage activity.
In the Autumn statement last week, Osborne said stamp duty would be raised by 3%, which many believe will cause a rush to purchase buy-to-let property before the change comes into effect next April.
Rollings said: “These figures only look at October – and George Osborne’s package of housing announcements in the Autumn Statement last week will have keyed up a new wave of first-time buyers eager to get their foot in the door.
“The big question as we enter the New Year is whether the supply of homes will match the increasing demand that’s clearly evident in the mortgage market.”
Richard Pike, Phoebus Software sales and marketing director, said: “I will be interested to see how these figures compare when the CML’s statistics are confirmed in December and where the differences lie. The value of loans in August for instance was lower than in October but higher in number, so will it be number or value, or both? “
“Following the recent spending review, and the Chancellor’s moves to curb buy-to-let in his bid to increase homeowenship in the UK, one part of the market which has been most buoyant throughout the year is likely to take a hit in the coming months. Landlords, and would-be landlords, will be considering their position and the future viability of buy-to-let.”
