Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments on February’s Bank of England Money & Credit Report:
“Today’s data from the Bank of England shows that momentum is returning to the mortgage market with loan approvals for house purchases steadily climbing from month to month. Homebuyers are showing no signs of being dissuaded by uncertainty surrounding the election, and are taking advantage of market conditions that are ripe for borrowing at affordable rates.
“The combination of low inflation, moderating house price growth and a delay in the base rate rise seems to be working in consumers’ favour. Fierce competition between lenders is also a significant factor behind the rise in approvals. The emergence of more specialist lenders to compete with the high street brands means that, even with rigorous affordability checks in place, customers have more options than ever to explore getting a loan. Our own National Mortgage Index shows a record number of mortgage products were available in February* and this is undoubtedly helping to keep approval figures climbing.
“Remortgaging activity is also running above the six month average and the host of low rate deals available on the market should prompt a further pickup as more people take action – especially where they can reduce their mortgage repayments.”