Latest figures reveal lending numbers across the nation
Mortgage approvals for house purchases remained broadly stable at 60,000 in June, according to the latest data from the Bank of England (BoE).
Approvals for remortgaging, which only include remortgaging with a different lender, decreased from 29,300 to 27,500 over the same period.
Net borrowing of mortgage debt by individuals increased to £2.7 billion in June from £1.3 billion in May.
The BoE’s latest Money and Credit report also revealed that the annual growth rate for net mortgage lending rose to 0.5% in June, after a rise to 0.3% in May, continuing the trend seen in previous months.
Gross lending fell to £20.8 billion in June, from £22.6 billion in May, while gross repayments decreased by £1.6 billion over the same period, to £18.7 billion.
“The latest figures from the Bank of England show an increase in mortgage lending and a fall in consumer credit borrowing as the summer gets into full swing,” said Paul Heywood (pictured left), chief data and analytics officer at Equifax UK. “All eyes now are on the Monetary Policy Committee August base rate decision.
“A number of high street lenders have been cutting mortgage rates, but hotter than expected inflation data has cast fresh doubts on a central bank rate cut and we’re yet to see the fallout of England’s late Euros surge in next month’s figures.
“Either way, prices are still rising, we’ve seen persistent growth in highly utilised credit cards, and households will continue to feel the pinch for some time.”
Mark Hollands (pictured centre), head of sales and distribution at Bluestone Mortgages, said the mortgage approval figures indicate that consumer confidence has remained steady.
“This, combined with major lenders cutting rates in anticipation of a base rate reduction, should see demand for property rise in the second half of the year,” Hollands added.
Jason Ferrando (pictured right), founder and chief executive of easyMoney, noted that mortgage approval levels have remained largely robust in recent months, providing a strong foundation for further growth.
“With the election now behind us, we expect there will be a significant uplift in the number of buyers looking to make their move over the coming months, and this will only be intensified as and when interest rates are reduced,” Ferrando said.
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