Mortgage approvals rebound to seven-month high: BoE
With the usual increase in buyer activity that comes with the autumn months, it is not surprising to see these figures show a continuing rise in the number of mortgage approvals in October.
Mortgage approvals rose from 62,932 in September to 67,518 in October, according to the latest Bank of England Money and Credit figures.
This is the highest figure seen since 69,994 in March and is above the average of 63,914 over the previous six months.
The number of approvals for remortgaging was 43,513, also above the six-month average of 42,115.
Lending secured on dwellings increased by £3.3 billion in October, compared to an average monthly increase of £2.6 billion over the previous six months.
Gross lending secured on dwellings was £19.9 billion and repayments were £17.2 billion.
Jeremy Duncombe, Director of Legal & General Mortgage Club, commented: “With the usual increase in buyer activity that comes with the autumn months, it is not surprising to see these figures show a continuing rise in the number of mortgage approvals in October. However, what these figures also show is an ongoing rise in the number of buyers choosing to swap their existing mortgage deal, undoubtedly to take advantage of lower rates following the Bank of England’s lowering of the base rate in August."
Jeremy Leaf, former RICS residential chairman, added: "These numbers are encouraging as they show considerable resilience in the market, demonstrating again that the short-term fears about Brexit were overestimated and the long-term implications may have been underestimated. Needless to say, the real test of the market will come in early 2017 when we will see whether or not these approvals have been translated into increases in sales.
"The figures are particularly welcome as at this time of year people have other things on their mind and we expect a slowdown in the run up to Christmas. We wait with anticipation as to how people will respond in the new year. However, even with the festive season almost upon us there is still a determination among many to get on with buying and selling at realistic price levels."