View more on these topics

Mortgage approvals reach 15-month high in August

Mortgage approvals for purchase hit a 15-month high in August, according to the latest e.surv mortgage monitor.

Approvals rose from 49,239 in July to a seasonally adjusted 49,566 in August, which was 4.3% higher than in August 2010.

E.surv attributes the rise to loosening lending criteria and an increase in high LTV lending.

Loans at an LTV of 85% or more accounted for over 10% of total approvals in August, a high for 2011.

Purchase approvals with a high LTV grew at almost twice the pace of the rest of the market in August.

Approvals increased on all price brackets below £750,000, with approvals in the price bracket up to £125,000 accounting for 24% of all approvals, the highest proportion since April.

In addition, the average LTV on the cheapest price bracket rose from 67% in July to 68% in August.

Richard Sexton, business development director at e.surv, says: “The uptick in high LTV lending is encouraging, and lenders may still be trying to garner market share.

“But we shouldn’t get too carried away and begin hailing this as a portent of long-term recovery. High LTV lending still lags well behind the levels we saw back in 2008, and a slight loosening in criteria only makes a small dent in the vast backlog of buyers stuck in the rental market.”

He adds that the larger lenders still have their hands tied by weak economic growth and tough capital requirements, and says that in practice lenders can do little to grow loan books while under pressure on capital.



Halting life cover sales could lead to layoffs at Y3S

Specialist broker Y3S Group could make a number of redundancies in its life insurance department. Matt Cottle, director of Y3S Group, says 24 staff are in consultation, 19 of whom have been redeployed into other Y3S companies. Cottle says it has yet to make a decision regarding the remaining five, but expects to do so […]

Rooftop reaps the benefits of low three-month LIBOR as arrears fall

Low three-month LIBOR is behind a significant decrease in Rooftop Mortgages’ arrears, according to Fitch Ratings. A report from the ratings agency shows that the arrears levels of Mansard Mortgages, a series of non-conforming residential mortgage-backed securities originated by Rooftop, have almost halved since their peak. Fitch says: “The arrears in this series have stabilised […]

Burnett: what needs to happen for value to start performing again?

Value stocks have significantly underperformed growth stocks in Europe in the past decade. However, Rob Burnett, manager of the Neptune European Opportunities Fund, believes we are now approaching an inflection point. Watch the video below to find out more. In the video, Rob discusses: How low inflation and loose monetary policy since the global financial […]


News and expert analysis straight to your inbox

Sign up