4 Feb

Mortgage approvals on the rise

Mortgage approvals on the rise

The number of mortgage approvals in the UK rose for the first time in six months.

Figures from the Bank of England show the total mortgage approvals for residential properties reached 60,725 in December - up from 58,956 in the previous months.

There has been a downturn in the number of mortgages being approved over the past year, largely down to a rise in lending requirements and the additional checks on applicants.

Prior to the recession, the monthly mortgage approvals for each month stood at around 90,000.

"The introduction of more restrictive mortgage regulation in the autumn took the breath out of lending for a while," said Adrian Gill, director of Your Move and Reeds Rains estate agents.

"As the market adjusts to these new measures this stranglehold has been loosened. There was an encouraging December uptick in mortgage approvals, as borrowing is once more starting to build up speed," he added.

The ongoing recovery and low mortgage rates, as well as the success of the government's Help to Buy scheme has enabled more people to purchase their own property in recent months.

However, new research reveals that around 5.2 million UK mortgage holders are not prepared to pay their mortgage payments if they suffer an unexpected illness.

A survey from insurance provider Royal London discovered 52 per cent of UK mortgage holders do not have any provision to pay their mortgage costs if they do not earn for three months or more.

"Our research highlights how many UK mortgage holders are in a vulnerable position unsure how they'd cope financially and who they would turn to for financial advice," said Debbie Kennedy, head of protection proposition for Royal London’s intermediary division.

She added that it is vital for mortgage holders who rely on their income to have a plan in place to cover their outgoings if they are too ill to earn.ADNFCR-1222-ID-801773721-ADNFCR

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