Net mortgage lending rises despite fall in number of home loan approvals

Banks of England data shows surprise fall in number of mortgage approvals in May

The number of mortgage approvals slipped back in May, according to the Bank of England, after hitting their highest levels in more than a year in April.

Banks of England data shows surprise fall in number of mortgage approvals in May
Banks of England data shows surprise fall in number of mortgage approvals in May

BoE data shows lenders approved 64,434 mortgages in May compared with 67,580 in April.

However, net mortgage lending increased to £2.1bn in May – the biggest rise since November – compared with £1.7bn in April, according to the bank.

And the latest Bank of England figures show remortgaging accounted for almost one in three loans approved in May as more homeowners were given the go-ahead to switch than at any point since January 2014.

Tighter rules on mortgage lending took effect last year, requiring banks and building societies to make more rigorous checks on whether borrowers can afford their loans.

Nevertheless, mortgage approvals have risen in four of the last six months and the pace of price rises has picked up.

 

About the author:

John Collard was the director of the Company until December 2013 and now works part time as a Consultant. He is a law graduate and before joining Robert Holmes & Co. He had extensive experience of residential property matters, having worked in Central and South West London for the last 40 years. John is also an active Trustee of the charity Beating Bowel Cancer.
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