Mortgage approvals for house purchase increased to 91,500 in September from 85,500 in August, the highest since September 2007, according to the latest Money and Credit figures from the Bank of England.
Approvals are now 24% higher than in February 2020 and are around 10 times higher than the trough of 9,300 approvals in May.
Approvals for remortgaging with a different lender are slightly lower than in August, at 32,700, and remain 38% lower than in February 2020.
Net mortgage borrowing was £4.8 billion in September, up from £3.0 billion in August. Mortgage borrowing troughed at £0.2 billion in April, but has since recovered reaching levels slightly higher than the average of £4.0 billion in the six months to February 2020. The increase on the month reflected higher gross borrowing of £20.5 billion, although this remains below the February level of £23.4 billion.
Lisa Martin, development director at TMA, commented:“Housing market activity improved further in September, with a rise in buyer enquiries and transactions providing a welcome boost to the industry. The focus for lenders and advisers has been the progression of mortgage cases, notwithstanding the challenges with servicing, and processing the pent-up demand from buyers looking to take advantage of the Chancellor’s stamp duty holiday. Over the coming months, conveyancers can also expect to face greater demand as a result of the recent surge in mortgage business, and they should take time to prepare for this.
“However, another priority for the market over the short-term will be supporting customers who continue to face financial hardship – and this is where brokers can really show their value. For example, the next couple of weeks will be a crucial time for thousands of borrowers who are coming to the end of a mortgage payment holiday and are deciding their next steps. Now’s the perfect time for brokers to get in touch with these clients, review their current circumstances and discuss what the suitable options are.”
Original Article from Financial Reporter 29/10/20