Mortgage Approvals Fell in September

According to the trade body, UK Finance, the number of mortgage approvals recorded in September fell on an annual basis.  

Gross lending across the residential market was at £21.5bn, a 1.2% reduction compared with last September, while the main high street bank lenders saw mortgage approvals fall 9.1%.

House purchase approvals were also down 10.1%.

Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance, said:

“The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise.

“There has been modest year-on-year growth in card spending. However, borrowing through personal loans and overdrafts has contracted slightly in recent months, suggesting demand for unsecured household finance is becoming more subdued.

“Consumers are increasingly choosing to keep cash close to hand, with deposits held in instant access accounts showing steady growth.”

Andy Soloman, Business Growth Expert at Yomdel, commented:

“While mortgage approvals don’t necessarily paint a full picture of market conditions, they do provide a snap shot the current property landscape and more importantly, the current level UK homebuyer sentiment.

A reduction was always on the cards given that previous approval levels were heightened ahead of the increase in rates in August. So the market has seen more of a natural adjustment rather than a drastic reduction in buyer activity, although it’s still not firing on all cylinders when compared to previous years.

There is certainly still an appetite for homeownership in the UK, albeit a more selective one at present. While the property market is likely to take a back seat in the next Budget, we could see market activity continue to cool ahead of the announcement at the end of this month.”

Source : Insight DIY Team, UK Finance and Yomdel 

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