Mortgage approvals outstripped property agents’ expectations last month, with an impressive 40,541 new loans approved – the highest monthly figure on record since September last year.
Ahead of the publication of UK Finance’s latest mortgage market figures, which were released earlier this week, commentators had predicted that approvals were unlikely to creep any higher than 39,000.
However, the figures suggest that overall approvals hit a nine-month high as new homebuyers rushed to secure great deals ahead of a much-anticipated interest rate increase expected in early August.
Following the publication of promising economic data earlier in the summer, it is thought that the Bank of England (BoE) will hike its base rate to 0.75 per cent later this week, affecting existing variable rate mortgages and eventually being passed on to those taking out a new mortgage, too.
Commentators have noted that UK Finance’s figures indicated that housing market activity had climbed up from “its early 2018 lows,” despite the fact that approvals of re-mortgages were down slightly last month.
Prominent economist Howard Archer said that the market appeared to be “still finding it hard to really gain traction” amid interest rate fears and “limited consumer purchasing power.”
Meanwhile, other commentators such as economist Samuel Tombs, of Pantheon Macroeconomics, suggested that the market had peaked in June and that approvals were unlikely to rise any further – particularly if the Bank does indeed to choose to increase its base rate.
Carter Lemon Camerons LLP (CLC) solicitors is a City law firm which provides legal services with a personal touch for first-time buyers and experienced landlords alike. Unlike many City practices, we are happy to act in smaller private legal matters, bringing the same care and consideration as we do to large commercial matters. For more information about our residential services, please contact Prodromos Shakallis or telephone: 020 7406 1000.