UK Finance – Highest number of approvals in a decade
Mortgage lending in July reached the highest monthly total since March 2016 while approvals hit levels not witnessed for a decade, the latest UK Finance figures show.
Gross lending rose by 2.9 per cent to £26.1bn in July, compared to the same month last year, according to UK Finance.
High street banks approved 95,126 mortgages in July, which marked the highest monthly total since July 2009.
Mortgage approvals for purchase were 16.4 per cent higher than last July at 51,160, remortgage approvals were 19.4 per cent higher at 33,792 and approvals for other purposes were 12.7 per cent higher at 10,174.
Credit card spending of £12bn was the highest on record and an increase of 8.2 per cent on July 2018.
Phoebus Software sales and marketing director Richard Pike says: “These latest figures from UK Finance are the most encouraging for a while.
“As we know the lending figures for July were for mortgages approved up to three months ago.
“It will be very interesting to see what the figures look like in September and October when the latest HM Revenue & Customs figures showed that property transactions fell considerably in July.”
Responsible Lending development director Tim Waterlow says: “Mortgage approvals have not reached these dizzying heights since the depths of the financial crash so it is quite remarkable it has taken us a decade to get here.
“This fact alone drives home the long-lasting impact the crash has had on the housing market and, with murmurings around Europe of more economic turmoil, lenders will be hoping this is not a peak before yet another collapse.
“At the same time, the jump in mortgage approvals for home purchase provides some hope in the face of the ceaseless decline in transaction figures, which show sales of homes are as much in the doldrums as ever.
“Lenders will be hoping this latest data could point to the housing market’s Phoenix moment and the start of a new recovery in transaction volumes.”
Source: Mortgage Strategy