The number of mortgage approvals from high street banks has seen its biggest monthly increase in six years.
Research from the Bank of England shows more than 68,000 loans were approved in April across the UK, the highest monthly figure in over a year. Statistics from the previous month saw just less than 62,000 loans approved which highlights a monthly increase of 9.9% in April, the largest rise month-on-month since 2009. The news follows on from record low mortgage rates in the UK, with some lenders offering a five year fixed rate loan at less than 2% in recent months.
Landlords in particular are reaping benefits of cheap mortgage deals as it was recently reported that buy to let mortgage lending is increasing by as much as 12% month-on-month, with the total value of loans standing at £2.7 billion in March.
Graham Davidson, Managing Director of Sequre Property Investment, comments on the rise of mortgage approvals: “The Mortgage Market Review (MMR) may have deterred some from trying to get a mortgage in the past year or so, but this report indicates that the housing market is very much moving forward.” “There was a slight uncertainty in the run-up to the General Election, and many experts believed that house prices and general sales would slow down as a result of potential home buyers and investors holding off on purchasing. Looking at the market and the statistics now, this doesn’t appear to be the case and with mortgage approvals continuing to grow at this rate, prices will continue to improve, which is great news for investors who particularly look for capital growth on their assets.”
With rates currently at an all-time low, there has never been a better time to consider a mortgage.