30 Jun

UK mortgage approvals increasing

UK mortgage approvals increasing

New figures show there has been a rise in mortgage approvals since the start of 2015.

Data from the British Banking Association shows gross mortgage borrowing in May totalled £10.4 billion - although this is five per cent lower than in 2014.

It could be that changes in the mortgage regulation guidelines may have dampened the market as providers struggled with the new rules.

Charles Haresnape, chairman of the Intermediary Mortgage Lenders Association (IMLA), explained there has been a fourth successive month of increases and this could mean banks and consumers have now grasped the changes, but there is still a way to go to get back to the peak approval periods.

"All the same, there were 5,000 fewer approvals in May than was the norm in the six months before the Mortgage Market Review (MMR) took effect. Clearly there is still some way to go before lending activity on the high street is fully restored," said Mr Haresnape.
 
He added: "Looking ahead, our chief concern is that UK mortgage borrowers face another wave of changes headed their way in the shape of the Mortgage Credit Directive (MCD). The short term threat is that another transitional period will slow the applications process and reduce the industry’s capacity to lend."ADNFCR-1222-ID-801792788-ADNFCR

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