The British Bankers Association reports each month on the mortgage approval activity of the “main high street banking groups” which represent 2/3 of mortgage lending in the UK.
Conveyancers will wonder whether the market is likely to fall over the coming months but hold on to the glimmer of hope that at the moment it is holding level.
In their latest report for June David Dooks the Statistical Director of the British Bankers Association says “The bank’s mortgage lending position was little changed in June. The abolition of HIPS and a reported increase in the number of house sellers is experts to encourage activity in the market, though this may be tempered by households’ uncertainly over job prospects and the impacts of fiscal tightening.”
House purchase mortgage approvals were 34,813 slightly lower than the May figures at 36,418 which is similar to the volumes since December when a peak occurred due to the changes in stamp duty of around 45,000 transactions. The June figure was almost 10% below the 6 month average of 37,027.
Remortgage activity was at 21,248 in June compared with 21,249 in May and very close to the six month average. Remortgage activity remains well below the figures in 2008 before the interest rate reductions when it was common for in excess of 50,000 remortgages to be approved in a month.