MMRs impact on mortgage market dissipates

Mortgage approvals by all UK-resident mortgage lenders for house purchase picked up in June, before easing back slightly in August, according to the Bank of England’s latest Trends in Lending report. The number of approvals for remortgaging was broadly unchanged between June and August.

Related topics:  Mortgages
Rozi Jones
20th October 2014
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In recent discussions, most of the major UK lenders reported that operational issues associated with the implementation of the Mortgage Market Review had pushed down on approvals over the summer, but had now largely dissipated.

Total gross secured lending in the three months to August increased compared to the previous period.  In forecasts published in July 2014,  the Council of Mortgage Lenders expected gross secured lending by all UK-resident mortgage lenders in 2014 to be 18% higher than in 2013 and for lending in 2015 to be 6% higher than in2014.

The average monthly net lending flow by mortgage lenders was £2.3 billion in the three months to August, broadly unchanged compared to the previous three months.  

The proportion of new mortgages that were fixed rates rose from 64% in 2012 to 88% in Q2 this year, and the rates on two- and five-year fixes had also dropped 9 and 15 basis points respectively.

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