The latest mortgage approval statistics from the Bank of England (BoE) have been published.
In its most recent release the figures show that mortgage approval levels dipped by -0.4% between March and February of this year. Figures were also -14.5% lower when compared to the same time last year.
Experts from around the industry have shared their views on the new figures.
CEO of Octane Capital, Jonathan Samuels, commented:
“While overall property market sentiment remains very good, a dip in the level of mortgages being approved was always likely to follow such a sustained period of heightened market activity.
This has been largely due to lenders tightening their belts following a number of consecutive base rate increases and we’re now starting to see this more cautious approach to lending start to materialise within topline market statistics.
With the cost of living also putting pressure on many households, this slow but steady decline in buyer activity is a trend we expect to see maintained throughout the remainder of the year.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“Many lenders are now acting with a far greater degree of caution and for prospective buyers this means fewer product options at higher rates.
This has inevitably reduced the number of buyers being approved for a mortgage, although those that have are still able to take advantage of a relatively affordable cost of borrowing.
Of course, while current mortgage rates still remain fairly favourable, we expect that they will continue to climb throughout the remainder of the year. So those considering a purchase would be best advised to act now as they may well find the offer presently on the table won’t be there in a month or two.”
Simon McCulloch, Chief Commercial & Growth Officer at Smoove said:
“In spite of mortgage rates rising over the last few weeks, house purchase approvals have continued to rise. Re-mortgage approvals are also steadily increasing and according to our data, the average re-mortgage home value is £390,647 – up 11% year-on-year.
Would-be home movers may be trying to get ahead of further rate rises, and therefore trying to expedite getting their next home. However, against this backdrop, home moving sadly remains a frustrating experience. It’s protracted, confusing and incredibly stressful. It is time the analogue conveyancing process was digitised. Whether you’re a lender, buyer, homeowner, solicitor, or estate agent, adopting new technology will help make the transition for all parties involved quicker and more efficient.”
Mortgage search platform, Twenty7Tec, has issued its latest mortgage market findings which correlates with BoE data trends showing that April 2022 had the fewest monthly mortgage searches since October 2021. The market also saw a 20% drop in Buy to Let mortgage searches and April was the first month with fewer mortgage products on the market at month end since October 2020.
James Tucker, founder and CEO of Twenty7Tec said of the findings:
“It’s hard to determine if the changes we’ve seen in the market are due to a change in confidence, economic outlook, the Bank of England rate change or simply down to April having fewer working days and everyone needing a well-earned break. The next few days for the market are going to be very instructive.”
