Mortgage approvals grow in August: BoE

Figures from the Bank of England show that both the number and value of mortgage approvals increased in August.

In total, mortgages worth £22.6bn were approved, up from the £20.9bn figure seen last month.

The number approved for house purchases grew from 65,156 in July to 66,440 in August, a modest rise from £12.3bn to £12.5bn worth.

For remortgages, meanwhile, approvals increased from 44,795 to 53,125 – from £8bn to £9.3bn.

The statistics also detail that UK households borrowed an extra £2.9bn against their property in August – down from £3bn in July and the lowest monthly secured net lending total since July 2016. The annual growth rate is now at 3.1 per cent, down from the 3.2 per cent seen last month.

OneSavings Bank sales and marketing director John Eastgate says: “Brexit and its possible consequences hang over every aspect of our economy. These numbers come shortly after drastic falls in house prices were forecast in the event of a no deal scenario and more broadly, the general discord in government can serve only to further challenge the already depressed levels of consumer confidence, especially when it comes to personal finances.

“Calls to stimulate housing demand through, for example stamp duty reforms, represent a well-intentioned attempt to stimulate activity however until we have some certainty about our post-Brexit position, such attempts risk only further complication of the UK’s already complex position in respect of housing policy.”



Bank of England moots tighter environmental regulation for homeowners

A report on climate change issued by the Bank of England’s Prudential Regulation Authority has hinted that tighter environmental regulations may be on the way for landlords and owner occupiers. As covered by Lucy Barrett in Mortgage Strategy, from 1 April new Minimum Energy Efficiency Standards came into force, stating that landlords can only rent […]


European banks trial new green mortgages

Europe is leading the way with a trial of green mortgages, which could bring savings for those with the most energy efficient homes. Bloomberg reports that 39 European banks will be testing the new green mortgages for borrowers whose homes meet a set of energy efficiency standards. The standards themselves have been agreed by the […]


Bank of England holds base rate at 0.75%

The nine members of the Monetary Policy Committee have voted unanimously to maintain the base rate at 0.75 per cent. The meeting minutes reveal that the committee believes that, “there have been indications, most prominently in financial markets, of greater uncertainty about future developments in the [EU] withdrawal process,” before adding that, “any future increases […]


Santander starts instructing valuation on day application is received

Santander has moved to knock days off the application process by instructing the valuation on the day it receives a case where the product comes with a free valuation. Previously, a valuer would be instructed once a case has gone through the underwriting process. Santander head of business development for mortgages Graham Sellar says: “We […]


News and expert analysis straight to your inbox

Sign up