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High Street Bank Mortgage Approvals Rise
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
High Street Bank Mortgage Approvals Rise
Mortgage approvals by high street banks for residential property purchases increased by 11% annually in July.
The British Bankers’ Association (BBA) reports that there were 46,033 approvals for house purchase loans.
There was also a 29% annual rise in remortgage approvals, to 24,400, according to the BBA. This is the highest number for four years, as borrowers rush to switch to new deals ahead of the imminent interest rate increase.
Both figures were up on June’s numbers, with overall approvals at 77,451 in July, from 76,104.
Additionally, the UK mortgage market has been given a boost by the Chinese financial crisis.
Chief Economist at the BBA, Richard Woolhouse, comments: “In July, people were concerned about an interest rate rise and I think this led to a rush in remortgaging.
“Everything that has happened in China this week puts the likelihood of that rise back two to three months.
“But even if rates do go up in the near future, I don’t think mortgage rates will go up as much and in any case, this won’t impact much on people’s decision to buy a house.”1
1 http://www.propertyindustryeye.com/mortgage-approvals-by-high-street-banks-jump-up/
