View more on these topics

BBA: Approvals plunge in August

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 advanced, 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: “August is always a month affected by the holiday season, which will contribute to this mixed bag of figures. 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.



Blackwell says affordability tests will be relaxed

FCA mortgage and mutual sector manager Lynda Blackwell believes the tough affordability measures used by some lenders post-MMR will be relaxed as the new rules bed in. The regulator has previously said it had “wondered why” some lenders had included bizarre questions in their affordability assessments post-MMR. In the weeks following the implementation of the […]


Bank of Scotland most complained about lender

Bank of Scotland has topped the FCA’s list of most complained about mortgage lenders in the first half of the year. According to figures published today by the FCA, BoS had 16,204 mortgage complaints made against it in the first half of 2014, a 39 per cent increase on the 11,624 complaints it received a […]


AMI head of policy to join FCA

Association of Mortgage Intermediaries head of policy Alex Revell is leaving to join the FCA as a senior associate within the regulator’s sector support team. Revell, who is expected to leave the trade body in November, has worked on policy analysis at AMI for the past five years. The trade body says it is currently […]


News and expert analysis straight to your inbox

Sign up