New figures from the Bank of England have revealed that UK mortgage approvals rose slightly in May following April’s slump.
The Bank’s Money and Credit report showed that the number of mortgage approvals rose from 66,205 in April to 67,042.
Net mortgage lending went up by £2.8 billion in May, compared to the average of £3.6 billion over the previous six months.
The number of approvals for remortgaging was 42,919, up from 40,870 the previous month.
Jeremy Duncombe, Director, Legal & General Mortgage Club, said: “Mortgage approvals flattened in May, as the nation geared up to vote in last week’s referendum. Uncertainty may have led some borrowers to put on hold their aspirations of owning a home. However, despite the initial surprise of the result, and particularly since the calming statement made by the Governor of the Bank of England the swap markets have not reacted too badly to the outcome.
“As such, there does not seem to be an immediate risk of a wholesale withdrawal or re-pricing of fixed rate deals. Although lenders are likely to be keeping this under active review, some longer term fixed rates are even starting to reduce.”
Steve Griffiths, head of sales and distribution at Kensington, said: “Given the uncertainty we have seen in recent weeks, it’s no surprise that these figures show that lending remained stagnant in May. On-going volatility in the UK economy could lead to a continuation of this trend, as buyers decide to put off their next purchase.
“It’s therefore more important than ever for brokers to make the most of every business lead, whether it be a straightforward case or a complex one. With more and more people choosing to pursue self-employment or freelance work, it is crucial that advisers and borrowers alike make themselves aware of the options that are available when it comes to specialist lending.”
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