The number of mortgage approvals rose to 70,410, compared to 69,630 in October an the average of 68,428 over the previous six months.
The number of approvals for remortgaging was 39,161, in line with the average over the previous six months.
Total lending to individuals increased by £5.3 billion in November, compared to the average monthly increase of £4.4 billion over the previous six months.
Brian Murphy, Head of Lending at Mortgage Advice Bureau, said:
“Mortgage approvals increased for the second successive month in November, with no sign of a winter slowdown. Approvals now stand significantly higher than they did in November 2014, driven by strong growth in lending to both homebuyers and existing homeowners. Activity has also been encouraged by record low mortgage rates, which make monthly payments more affordable.
“The number of remortgage approvals cooled slightly in November, but remain significantly higher than a year ago. Research from MAB shows the value of a house for remortgage reached a 13-month high in November, giving borrowers a significant boost to their housing equity*. This puts homeowners in a strong position to access affordable mortgage deals, providing an extra incentive to remortgage.
“Lenders’ appetite for new business grew significantly over the course of 2015, and this is expected to continue into 2016. This means those who meet affordability criteria will continue to enjoy the excellent deals available in the marketplace. However, overall housing supply continues to be constrained, and it is important that housebuilding targets are met in order to ensure an inclusive market.”
Richard Pike, Phoebus Software sales and marketing director, said:
“The Bank of England’s data today confirms, as estimated by the CML in December, that despite the large pick up in approvals in October, there are few signs of a slowing market. As we head into the new year this is a positive sign for the housing market and the economy as a whole. It will be interesting to see what the figures reveal for December, but going on recent activity, and reports from the intermediary market, there was little in the way of a dip before Christmas.”
Richard Sexton, director of chartered surveyor e.surv commented:
“Mortgage lending remains stable as it continues to benefit from the improving economic climate. Overall lending in November was up by circa 3% compared to the previous 6 months, with remortgaging levels delivering a healthy contribution to the total.
“For first-time buyers, 2016 may bring both opportunities and hurdles. Those looking to get on to the property ladder should be encouraged by consistent lending levels, but small deposit borrowers need to remain a priority for lenders. A stable market and measures such as MMR and Help to Buy continue to play their part – however increases in house prices and any upward movement in interest rates later in the year would create challenges particularly for the FTB sector.”
