"Despite an uncertain political outlook, it is great to see the industry adopting a ‘keep calm and carry on’ approach"
Gross lending also rose to above its recent average, from £20.4 billion in December to £21.8 billion in January.
However remorgage approvals dipped slightly to 47,155, falling from the post-crisis high of 47,721 seen in December.
Lending secured on dwellings rose by £3.4 billion in January, slightly below December's figure of £3.8 billion which was the highest flow since March 2016.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “Today’s rise in mortgage approval figures highlights the resilience of the UK housing market. Despite an uncertain political outlook, it is great to see the industry adopting a ‘keep calm and carry on’ approach as the mortgage industry continues to serve the needs of remortgagers and buyers alike.
“With the Bank of England rate at 0.25%, borrowers have a perfect opportunity to take control and find the best deal for them. By reviewing their existing mortgage deal, borrowers have the potential to save themselves a significant sum of money – Legal & General figures suggests the average saving from remortgaging could be as much £2000, which is the equivalent of a 7.2% jump in salary for the average earner.”
Richard Pike, Phoebus Software sales and marketing director, added: “Given the unseasonal finish to 2016 there were many that feared 2017 would start more quietly, but the Bank of England’s figures for mortgage approvals in January say otherwise. With other contributing factors on the horizon including Article 50, no doubt there will come a time when people step back and take stock. For now though both house purchase and remortgage show healthy activity, with building societies and challenger banks also reporting strong lending figures.
“There is some uncertainty regarding base rate increases, which is inevitable. However, with inflation on the rise and house prices continuing to increase, consumers may be more inclined to fix rather than hedge their bets on variable rates.”
