January saw highest total approvals for home buying in UK for a year

January saw highest total approvals for home buying in UK for a year

1st Mar, 2016

January set the year off to a positive start, seeing the highest number of loan approvals for house purchases since the beginning of 2014. The number of approvals increased by 22%, with the number of remortgage approvals increasing by 33% year on year.

Data from the Bank of England shows that purchase approvals reached 74,581 in January compared to the average of 70,221 over the previous six months. Those remortgaging reached 42,228, compared to the average of 40,306 over the previous six months.

According to mortgage lenders, the threat of a rate rise is no longer driving the remortgaging uplift but instead is being supported by home owners looking to improve their financial situation through cheaper monthly payments. 

With rising home owner equity and a range of competitive mortgage deals on the market, home owners are determined to capitalise on currently low rates and market competition amongst lenders.

In addition to this, stability in lenders’ mortgage funding continues to improve. With interest rates going nowhere fast and cheaper mortgage deals sticking around, buyer demand is staying high. With all the government initiatives now in place, many first time buyers are looking to jump onto the property ladder.

The beginning of 2016 has been far busier than usual in the mortgage market, signalling a strong spring buying season ahead.

 

Article Source: www.propertywire.com

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