However the figure marks a slight increase from 60,349 approvals in December, marking their second monthly increase.
The number of approvals for remortgaging stood at 31,640 compared to the average of 32,044 over the previous six months.
The number of mortgage approvals have continued to fall in H2 2014 since the introduction of MMR in the spring, easing house price growth.
Additionally, effective interest rates data for January released today show that the effective rate on the stock of outstanding secured loans (mortgages) decreased by 1bp to 3.17%.
The new secured loan rate fell to 2.81%, a decrease of 19bps on the month, while the rate on outstanding unsecured personal loans increased by 5bps to 7.27% in January and the new unsecured personal loan rate decreased by 12bps to 7.15%.
Paul Hunt, managing director of Phoebus Software, said:
“The number of mortgage approvals in January, as reported by the Bank of England this morning, was as expected lower than the average over the previous six months. There is of course the seasonal element to be considered, historically January has always been a quieter month after the Christmas holidays. However, there are definite markers for an improving market with the availability of higher LTV products and longer term mortgages, and sellers now understanding the difference that the new stamp duty rules have on their ability to move up the ladder. Add to this improved real earnings and lower than expected inflation and we have a landscape that, even with the impending election, is likely to tempt sellers and buyers into the market.”
Brian Murphy, Head of Lending at Mortgage Advice Bureau, comments:
“Mortgage activity traditionally slows around the turn of the year, so a slight dip in overall loan approvals during January is not unexpected. Even so, December’s stamp duty overhaul gave an added incentive for many would-be homebuyers to progress their moving plans. The strongest momentum is clearly in the purchase market, where the number of loan approvals in January continued to grow despite a slight slowdown in remortgaging and other activity.
“Nevertheless, lenders have launched some very attractive mortgage rates in recent weeks, which mean that many people who haven’t considered remortgaging recently have a strong incentive to re-think. Mortgage application figures for January indicated a surge of interest in switching loan, which can often involve relatively little effort for significant reward.
“The government’s new first time buyer incentive is likely to keep home-buying high on many people’s agenda for this year. Across the market, low mortgage pricing and a calmer rate of house price growth makes an attractive combination for many people eying up a first step onto the housing ladder. Even so, a sustained increase in house building is a vital part of the jigsaw that is still missing, and government needs to involve lenders and brokers as well as house builders in its efforts to tackle this challenge.”
