View more on these topics

August chill as bank mortgages dive 9.4%

The mortgage market cooled in August with approvals plunging 9.4 per cent year on-year.

British Bankers’ Association figures show the total number of approvals in August reached 64,190, down from the previous August’s 70,859. In terms of value, approvals in August totalled £9.6bn, falling 4 per cent from £10bn the previous August.

Despite the fall in the total number of mortgage approvals, the value of gross lending rose 10.6 per cent from £10.3bn in August 2013 to £11.4bn last month.

Purchase approvals saw a small increase in August, totalling 40,476 , a rise of 2 per cent from 39,740 12 months earlier. The value of purchase approvals increased 5 per cent from £6.2bn in August 2013 to £6.5bn last month.

The remortgage slump continued in August as approvals fell 20 per cent from 21,981 to 17,678 between August 2013 and last month. The value of remortgage approvals in August was £2.8bn, down 15 per cent from £3.3bn in the same period.

Loans for other purposes, including further advances, saw the biggest fall, with approvals dropping 34 per cent from 9,138 in August last year to 6,036 in August 2014, with the value of these approvals falling 18 per cent from £394m to £325m.

London & Country associate director of communications David Hollingworth says: “It is good to see that purchase approvals are up year-on-year, but the overall decline in approvals could be the final effects of the Mortgage Market Review, coupled with the summer lull. I think we are starting to get over the MMR hump now and that should be reflected in future figures.

”There is certainly room for improvement in the remortgage sector and lenders are starting to offer some good rates for remortgages so that should start to happen soon.”

The figures are taken from the six largest UK retail banking groups, including Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland, Santander and Virgin Money. They account for some two-thirds of UK mortgage lending.



Marketwatch: Mansion tax back on the agenda

So the Great is back in Britain then as those good old Scots, (always liked them) decided we were better together after all. It is always good to know that the Queen has been purring down the phone at our Prime Minister and shows that good, decent Britishness has been restored. This may stick in […]


The Mortgage Mole: Lasting Impression

Lasting Impression Mortgage Strategy editor Paul Thomas has spent the past five years chasing down stories for the mortgage industry but Mole hears he has been making an altogether different type of splash of late. Having recently enjoyed a sojourn in Portugal with friends, Thomas – or PT, as friends, colleagues and apparently the Portuguese […]


New calls for lenders to hike proc fees

Industry experts have renewed calls for lenders to pay higher procuration fees due to the additional work involved in processing cases post-MMR. Taking part in a panel session at the Financial Services Expo in London today, experts suggested lenders should recognise the work brokers do by paying more commission. Mortgages for Business managing director David […]

CML - 700

Shares dip for six biggest lenders

The UK’s six biggest mortgage lenders saw their share of lending dip for the fourth consecutive year in 2013, according to the Council of Mortgage Lenders. Data published last week by the CML shows the top six lenders’ share of gross lending increased from 61 per cent in 2006 to a peak of 86 per […]

UK policy: Kate Moss and short-termism

“Nothing tastes as good as skinny feels,” said supermodel Kate Moss, who is not often credited for her insights into policy making. Perhaps she should be. In politics, as in matters of diet, the course of action that is the best over the long term is often not the most desirable course of action in the short term. Add the instant gratification of the democratic electoral cycle and, instead of good policy making, you sometimes get the equivalent to a midnight binge in front of the fridge.

Read more

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up