Buyers are being tempted back into the housing market due to competitive mortgage rates.
Mortgage approvals for house purchase
jumped to a six-month high in March as competition among lenders helped
tempt buyers back to the market, figures showed today.
A total of 38,751 loans were in the pipeline for people buying a property during the month, the highest level since September last year, according to the British Bankers’ Association.
It was the third consecutive month during which approvals for house purchase have increased, after the market suffered its traditional seasonal dip in December. There was also a further rise in the number of loans arranged for people remortgaging, with these rising to an eight-month high of 19,120.
The BBA credited the uptick in activity to consumers taking advantage of the competitive mortgage rates that were currently available.
But despite the improvement in approvals levels, they were still significantly lower than they had been in March last year, shortly before tougher lending criteria were introduced under the Mortgage Market Review.
Approvals for all types of lending totalled 63,778 in March, 14 per cent below the level seen in the same month of 2014.
Mortgage advances also increased to a six-month high, reflecting the recent upturn in mortgage approvals.
Net lending, which strips out repayments and people switching loan, totalled £792 million during the month, although this was still significantly below last March’s figure of £1.23 billion.
Today’s data is the latest in a series that suggests the property market is beginning to heat up again as it benefits from a spring bounce.
A recent survey by mortgage lender Halifax showed that consumer confidence in the housing market had soared to an eight-month high during March on the back of the improving economy and low mortgage rates.
The Council of Mortgage Lenders also said advances had jumped by a fifth during the month, while HM Revenue & Customs reported a rise in transactions in March.
Meanwhile, figures from property services group LMS showed that the number of loans that were advanced to people remortgaging increased by 4 per cent last month, although they were still 11 per cent lower than for the same month last year.
But despite the increase in number, the value of advances for people remortgaging fell to £3.3bn in March, the lowest level for two years.
A total of 38,751 loans were in the pipeline for people buying a property during the month, the highest level since September last year, according to the British Bankers’ Association.
It was the third consecutive month during which approvals for house purchase have increased, after the market suffered its traditional seasonal dip in December. There was also a further rise in the number of loans arranged for people remortgaging, with these rising to an eight-month high of 19,120.
The BBA credited the uptick in activity to consumers taking advantage of the competitive mortgage rates that were currently available.
But despite the improvement in approvals levels, they were still significantly lower than they had been in March last year, shortly before tougher lending criteria were introduced under the Mortgage Market Review.
Approvals for all types of lending totalled 63,778 in March, 14 per cent below the level seen in the same month of 2014.
Mortgage advances also increased to a six-month high, reflecting the recent upturn in mortgage approvals.
Net lending, which strips out repayments and people switching loan, totalled £792 million during the month, although this was still significantly below last March’s figure of £1.23 billion.
Today’s data is the latest in a series that suggests the property market is beginning to heat up again as it benefits from a spring bounce.
A recent survey by mortgage lender Halifax showed that consumer confidence in the housing market had soared to an eight-month high during March on the back of the improving economy and low mortgage rates.
The Council of Mortgage Lenders also said advances had jumped by a fifth during the month, while HM Revenue & Customs reported a rise in transactions in March.
Meanwhile, figures from property services group LMS showed that the number of loans that were advanced to people remortgaging increased by 4 per cent last month, although they were still 11 per cent lower than for the same month last year.
But despite the increase in number, the value of advances for people remortgaging fell to £3.3bn in March, the lowest level for two years.
The group also found that the average mortgage term had increased to five years, compared with 4.5 years 12 months ago.
Andy Knee, chief executive of LMS, said: “Despite a recent boost to mortgage lending as we head into summer, remortgage figures remain lower than last year, prolonged by the uncertainty of a looming election.
“At a time when interest rates and offers are at a record low, it is surprising to see that borrowers are remortgaging less often and are failing to capitalise on these offers.
“Stricter lending criteria and uncertainty around the election may be dissuading people from remortgaging more frequently.”
Andy Knee, chief executive of LMS, said: “Despite a recent boost to mortgage lending as we head into summer, remortgage figures remain lower than last year, prolonged by the uncertainty of a looming election.
“At a time when interest rates and offers are at a record low, it is surprising to see that borrowers are remortgaging less often and are failing to capitalise on these offers.
“Stricter lending criteria and uncertainty around the election may be dissuading people from remortgaging more frequently.”
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