Mortgage approvals see another dip in March: BoE

Mortgage approvals saw another dip in March, after February saw the first drop in six months, with 66,837 mortgages approved for house purchase compared to February's 67,936.

Related topics:  Mortgages
Amy Loddington
4th May 2017
bank of england boe

Figures taken from today's Bank of England Money and Credit report show approvals for remortgage also fell slightly to 42,814 in March, compared to Feburary's 43,730.

Lending secured on dwellings rose by £3.1 billion in March, similar to the recent average.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: 

"March saw a very slight dip in approvals for loans for house purchase and remortgaging, suggesting the market is ticking along, buoyed by lenders offering rock-bottom rates. 

"With HSBC launching the cheapest five-year fix on the market at 1.69 per cent yesterday and Yorkshire Building Society introducing a record low two-year discounted rate at just 0.89 per cent, the market is more competitive than ever. It is a good time for borrowers, with lenders keen to attract business from first-time buyers, home movers and those remortgaging.

"However, affordability criteria remains tight and good advice is more important than ever."

Jonathan Sealey, Hope Capital CEO, says:

“The market in 2017 to date has been fairly consistent, with little in the way of highs and lows.  It is interesting to see the Bank of England figures showing a drop in remortgaging for the first time this year.  Given the low interest rates, with many lenders now offering their lowest rates ever, it may be that consumer confidence waned as we approached the triggering of Article 50.  
 
“What will be more interesting is the figures next month following the general election announcement.  Remortgages have been keeping the whole market afloat, along with first-time-buyers, so it is an important sector.  We will wait with bated breath, but the opportunity to get a better, cheaper deal may win out over any uncertainty in the end.”

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