BoE: Mortgage approvals up 18% in August

Bank-of-England-BoE-Clock-700x450.jpgMortgage approvals were up 18.2 per cent year-on-year in August, according to the Bank of England.

The latest money and credit report shows there were 123,646 loans approved in August – up from 104,530 the previous August.

Within this, there were 71,030 loans approved for house purchase – a 12.3 per cent increase on the 63,211 loans approved 12 months earlier.

Remortgage loans were up 28.9 per cent, from 31 741 to 40,931, while loans for other purposes, including further advances, rose 21.9 per cent year-on-year from 9,579 to 11,685.

E.surv director Richard Sexton says: “Since the general election, house purchase lending has been growing steadily on a monthly basis – an indication of the building economic confidence and improving household finances widely reported. Sustained wage growth across the board is helping support home movers.

“Remortgaging is also active as rates remain low, and savvy homeowners consider switching to better deals, before any rate rise. And with a range of financial support schemes in place, the market is positive for those taking steps on to the property ladder.

“Of course, as house prices rise, we need to keep the bottom of the market alive, and this means providing finance to borrowers who can’t afford large deposits. Thankfully, banks are recognising the importance of this and the support is there, helped by the safeguards the MMR changes have brought in.

“The Help to Buy Isa will boost the bottom of the market further when introduced in December and the gloomy global economic outlook suggests a base rate rise may be unlikely this year, meaning further respite from weightier repayment charges.”