Mortgage approvals up marginally in March
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The number of mortgage approvals for house purchase increased slightly in March to reach 47,557, data from the Bank of England shows.
The figure is up from 46,708 in February and higher than the six-month average of 46,283.
However, approvals for remortgaging fell from 35,567 in February to 32,116 in March and were slightly lower than the previous six-month average of 32,390.
Brian Murphy, head of lending at Mortgage Advice Bureau, says it is surprising that remortgages declined in March, as expectations of an interest rate hike were highest during this month.
He says: “Logic would suggest remortgages will fall further in April given the news that inflation dropped back, but then logic and the property market rarely go hand in hand.”
The Bank of England figures also show gross mortgage lending was £11.1bn in March, slightly down on February’s £11.3bn, which is also the previous six-month average.
Murphy adds: “April is likely to see a drop-off in mortgage approvals on March, as the second half of the month was a write-off given the number of bank holidays. At best, the market in April was subdued.
“We will need to see the May approvals figures before we get a more realistic idea of how the mortgage market is faring.”
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