April 3rd, 2024
A positive uptick for the housing market to report, as mortgage approvals in the UK rose from 56,100 in January to 60,400 in February, according to figures released by the Bank of England.
This marks the highest level for mortgage approvals since September 2022, before the housing market took a hit due to the effects on the “mini budget” that was put into place.
Alongside this, approvals for remortgaging experienced a significant increase, climbing from 30,900 to 37,700 during the same period. These developments underscore the enhanced affordability for borrowers and reflect a positive sentiment in the housing sector.
The rise in remortgaging numbers also indicates a proactive approach by borrowers to capitalise on favourable market conditions.
Borrowers are increasingly exploring opportunities to secure better rates through remortgaging, showing better financial initiative than simply transferring to the Standard Variable Rate (SVR) with their current lender.
This proactive behaviour reflects a shift towards maximizing savings and optimising financial strategies amidst a dynamic lending landscape.
Kevin Kiley of CMME commented the following regarding this news:
Prospective buyers have been deterred from the market as of recent, primarily through the BofE’s 5.25% base rate, a figure which has remained constant over the last 8 months in the hopes of curbing UK inflation. With inflation on the way down, currently at 3.4%, experts expect a base rate decrease later this year.
Overall, the rise in mortgage approvals in February 2024 signals a potential resurgence in the housing market, and a potential sign of good things to come.
This news of increased approvals does however reflect a strategic mindset among property buyers, maximising savings and enhancing financial flexibility.
While challenges persist, including fluctuating market dynamics and evolving lender strategies, the prevailing optimism suggests a promising outlook for both home buyers and lenders alike.
As the market continues to adapt and innovate, CMME remains dedicated to supporting its clientele in navigating the evolving mortgage landscape and achieving their home ownership goals with tailored solutions and expert guidance. Click here to book a free, no obligation call with one of our expert team.