UK Finance – Total mortgage approvals highest since February 2017
Total mortgage approvals were at their highest since February 2017, at 44,034 last month.
This figure is up year-on-year, when 40,600 mortgages were approved in April 2018 – a jump of 8.6 per cent.
In addition, approvals for home purchase were up 8.6 per cent annually, remortgage approvals were up 2.2 per cent, and approvals for other secured borrowing were 0.8 per cent higher.
However, gross mortgage lending across the residential market in April 2019 came in at £20.3bn, 1.4 per cent lower than in 2018.
Springbok Properties founder and chief executive Shepherd Ncube comments: “Today’s mortgage approval numbers are a welcome relief from the negativity and uncertainty that many property market commentators have portrayed since the early days of Brexit, yet buyer confidence is shrugging off the political shenanigans that would otherwise seek to paralyse our economy and the housing market.
“House prices, especially in the north, are seeing no signs of relenting and mortgage approvals being so buoyant is bound to now factor into higher prices in a few months’ time.
North London estate agent Jeremy Leaf says: “Perhaps rather surprisingly, home purchase approvals, which are the most important element of these figures, were strongly higher in April but reflect a rather up and down period for the market.
“Nevertheless, it is a positive and once again demand proves to be more resilient, which it should be at this time of year.
“These figures are a little bit historic so looking forward, the political uncertainty is likely to weigh more heavily on results in the coming months so let’s enjoy it while we can.”
MT Finance commercial director Gareth Lewis adds: “These figures are as good as we could expect, given the ongoing political uncertainty.
“House purchases are up, which is encouraging because it means people are still going ahead and buying property even though you might expect them to hold fire because of the political outlook.
“People are still willing to spend money on what is their biggest purchase, which is not a decision that is taken lightly.
Source: Mortgage Strategy