The latest Bank of England figures on mortgage approvals and lending have just been released.
The figures show that: –
Mortgage approval levels dipped by -0.4% between March and February of this year.
They were also -14.5% lower when compared to the same time last year.
CEO of Octane Capital, Jonathan Samuels, commented: “While overall property market sentiment remains very good, a dip in the level of mortgages being approved was always likely to follow such a sustained period of heightened market activity.
“This has been largely due to lenders tightening their belts following a number of consecutive base rate increases and we’re now starting to see this more cautious approach to lending start to materialise within topline market statistics.
“With the cost of living also putting pressure on many households, this slow but steady decline in buyer activity is a trend we expect to see maintained throughout the remainder of the year.”
Director of Benham and Reeves, Marc von Grundherr, commented: “Many lenders are now acting with a far greater degree of caution and for prospective buyers this means fewer product options at higher rates.
“This has inevitably reduced the number of buyers being approved for a mortgage, although those that have are still able to take advantage of a relatively affordable cost of borrowing.
“Of course, while current mortgage rates still remain fairly favourable, we expect that they will continue to climb throughout the remainder of the year. So those considering a purchase would be best advised to act now as they may well find the offer presently on the table won’t be there in a month or two.”