Increase in mortage approvals is this good news
Recent figures from the Bank of England have revealed that August saw the highest number of mortgage approval’s since December 2009. Over 52,000 were approved in August, the previous six-month average was 47,551.
Although this slight increase is encouraging to an extent, my concern remains that first time buyers are still struggling to get onto the property ladder, due to the lack of products and reasonable rates at the higher loan to value, loans. Understandably lenders want the very safe cases where there is plenty of equity in the property, and in fairness there are some fantastic products available for those fortunate enough to be in this position. However, to stimulate the housing market, we need more first time buyers to enter the market as we are still very much in a 'buyers’ market' and any slight increase in mortgage approvals is also likely to be as a result of increasing numbers of buy to let purchases to people already owning property, particularly given the recent increase and improvements in Buy to Let mortgage products.
Simon Compton
Independent Financial Adviser
Think Finance
