First-time Buyer
Mortgage approvals at near one-year high
Mortgage approvals for those buying homes have reached their highest levels since February 2016.
Statistics from the Bank of England show January’s house purchase mortgage approvals rose for the fourth consecutive month to reach 69,928.
While these transaction levels remained 4% lower than January 2016, when 72,754 loans were approved, dropping to 72,278 the following month, activity has been improving steadily since lows of 61,884 and 61,411 seen in July and August respectively last year.
Approvals for remortgaging increased by 13% year-on-year from 41,761 in January 2016 to 47,155 last month, but dropped slightly on December when 47,560 remortgage loans were agreed.
Jeremy Duncombe, director of theLegal & General Mortgage Club, said: “Today’s rise in mortgage approval figures highlights the resilience of the UK housing market. Despite an uncertain political outlook, it is great to see the industry adopting a ‘keep calm and carry on’ approach as the mortgage industry continues to serve the needs of remortgagers and buyers alike.
“With the Bank of England rate at 0.25%, borrowers have a perfect opportunity to take control and find the best deal for them. By reviewing their existing mortgage deal, borrowers have the potential to save themselves a significant sum of money.”
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Legal & General figures suggest the average saving from remortgaging could be up to £2,000.