The number of approvals for remortgaging was 32,611 compared to the average of 28,717 over the previous six months.
Brian Murphy, head of lending at Mortgage Advice Bureau, comments on the rise in mortgage approvals:
“With almost 6,000 more house purchase loans approved in May compared to February, we’ve seen a surge of enthusiasm from buyers, brokers and lenders that has swept the cobwebs away from the property market over the last three months.
“Not only does it mean that prime borrowers have more options and better rates to choose from as lenders spruce up their product ranges, but borrowers who previously struggled to find a mortgage are also having doors opened for them.
“Adverse credit has really impacted consumers’ options since the credit crunch, but as conditions improve there are some options available even for those with a less than perfect credit history or adverse circumstances. Although the rates offered to them will be higher than the norm, we’re currently basking in the glow of a historic low for average rates across 2, 3 and 5 year fixed products.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"Mortgage approvals continue to improve, both for new purchases and remortgages. This is entirely what you would expect given the plethora of rock-bottom mortgage rates now available.
"Despite some erratic movements from Swap rates in the past week, mortgage rates are likely to stay low for some time yet. We also expect criteria to continue to loosen as lenders look at ways to attract borrowers other than simply undercutting each other on rate.
"However, while the numbers continue to rise, they are still well below what they were at the peak of the market before the crisis. The health of the housing sector is showing a slow and steady improvement but it is by no means out of intensive care just yet. Still, the indicators are good and government schemes such as Help to Buy will continue to provide much-needed assistance, particularly for struggling first-time buyers."
