Bank of England: Mortgage approvals down 4.1% in January

Mortgage approvals fell 4.1 per cent in January, according to figures released today by the Bank of England.

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In January there were 93,887 approvals, down from 97,958 in December last year.

Approvals for house purchase fell 1.7 per cent from 55,632 in December to 54,719 in January. However, January’s figure was higher than the previous six-month average, which was 51,344.

Remortgage approvals also fell, dropping 7.8 per cent from 27,731 in December to 25,573 in January. The previous six-month average was 27,527.

Approvals for other purposes, like increasing the size of one’s loan with the same lender, fell from 14,595 in December to 13,594 in January.

Gross lending also edged down slightly, falling from £12.4bn in December to £12.3bn in January, although the figure was up on the previous six-month average of £11.8bn.

Total repayments in January stodd at £12.5bn, compared to £12.4bn the month before and the previous six-month average of £11.3bn.

The figures are seasonally adjusted.

Intermediary Mortgage Lenders Association executive director Peter Williams says: “A drop in numbers is to be expected around the turn of the year, but the fact that the number of loan approvals for house purchase remained above the six month average suggests that overall conditions are continuing to improve.

“Brokers can certainly expect to see further rate cuts and product launches driving recovery and growth in the market. It will be interesting to see whether this month’s Budget brings any further initiatives to expand the Funding for Lending scheme, promote higher loan-to-value lending and address the continuing undersupply of housing.”

Click below to see enlarged tables showing gross monthly lending and repayments (left) and total monthly number of approvals of loans secured on dwellings (right):

BoEFigures