Mortgage approvals rise
According to the most recent data from the Bank of England, net mortgage approvals for house purchases climbed from 56,100 in January to 60,400 in February, reaching their highest level since September 2022.
Our team at MAB have first-hand mortgage data, which means they can confirm what they are experiencing in the market as well as what has been reported by the Bank of England.
According to the most recent data from the Bank of England, net mortgage approvals for house purchases climbed from 56,100 in January to 60,400 in February, reaching their highest level since September 2022. During the same period, net approvals for remortgaging also saw an uptick, rising from 30,900 to 37,700. Additionally, the interest rate on newly drawn mortgages dropped by 29 basis points to 4.90% in February.
James King, Financial Services Director at local brokerage MAB Kent Ltd, noted that mortgage
approvals for new purchases reached their highest level since September 2022, attributing this rise
to lower mortgage rates enhancing borrower affordability and confidence. He mentioned an
increase in activity and inquiries among their brokers.
King also highlighted an increase in remortgage numbers, as borrowers sought out better mortgage
rates. He expressed hope that lenders would continue to lower rates in the coming weeks to assist
with affordability.
Tony Hall, head of business development at Saffron for Intermediaries, stated that the figures
confirm a robust recovery in the housing market for 2024, following a volatile 2023. He expressed
optimism regarding greater certainty and stability in the market with inflation slowing to 3.4% in
February. However, Hall noted the inconsistency in mortgage pricing among lenders, with some lowering rates while others raising them, reflecting the fluctuating nature of mortgage pricing as lenders await settled swap rates.
He mentioned that lenders are exploring innovative products, such as 99% LTV mortgages, to help
first-time buyers enter the market amid pent-up demand.
Overall, the Bank of Englands figures are positive and encouraging, indicating a growing interest in
borrowing and a favourable direction in house purchase numbers.
Given the difference in lending rates between lenders its essential that borrowers seek advice from a broker and not just talk directly to the bank.
If you're planning to buy or remortgage a property in Gravesend and need guidance on obtaining a mortgage agreement in principle, feel free to contact us.
You may also find the our other blogs useful: