"Despite wider uncertainty, this stability is an indicator that the mortgage market is in good health."
Mortgage approvals for house purchase increased by around 800 in June to 66,400 and the number of approvals for remortgaging rose slightly to 47,000, according to the latest Money and Credit statistics from the Bank of England.
Purchase approvals fell back slightly in May to 65,400, following strong figures in April.
The latest figures also show that net mortgage borrowing by households was £3.7 billion, close to the average of the previous three years. This followed a slightly weaker net flow of £2.9 billion in May.
The annual growth rate of mortgage lending remained stable at 3.1%, around the level that it has been at since 2016.
Craig Hall, head of broker relationships and propositions at L&G Mortgage Club, commented: “The annual growth rate for mortgage lending remains stable around 3% – where it’s been since late 2016. Despite wider uncertainty, this stability is an indicator that the mortgage market is in good health. Increased choice and competitive rates continue to encourage many homeowners to remortgage, with the low rate environment offering consumers great value."
Richard Pike, sales and marketing director at Phoebus Software, added: “The latest figures from the Bank of England show another picture of a fairly stable market, taken over the last three years. However, the interesting aspect is the rise in mortgage approvals for both purchase and remortgaging. When remortgaging has been the one thing that has held the market up for such a long time, it was surprising to see the number of purchases increase recently while remortgaging fell. We wait to see if this is a seasonal blip of whether the purchase market is truly beginning to make headway again.
“As things settle down in Parliament and we prepare ourselves for the next milestone, we will watch with interest to see how the market is affected and whether the confidence shown in June’s figures continues. It is of course, impossible to predict but, going on these figures, it may just be that this is the new normal. At least for a while.”