Mortgage approvals bounce back in May
The latest figures show that: –
- Mortgage approvals on house purchases for May sat at 63,032 up 3.9% from 60,656 in April.
- The monthly increase seen in May marks the end of four months of previous decline, with approval levels having fallen each month since January of this year.
- Approvals are also 2.5% higher than the 61,478 seen in May 2024.
Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:
“The increase in mortgage approvals seen in May marks a welcome turnaround following four consecutive months of marginal decline, suggesting that the market has bounced back now that the uncertainty of the recent stamp duty deadline has passed.
Buyers are once again moving forward with confidence and, with interest rates showing greater stability and many lenders continuing to offer a competitive range of sub-4% mortgage products, conditions remain supportive for both first-time buyers and home movers.
As we head into the second half of the year, we expect this upward momentum to continue building. With affordability improving and sentiment strengthening, the foundations are in place for a more active and confident housing market in the months ahead.”
CEO of Octane Capital, Jonathan Samuels, commented:
“May’s uplift in mortgage approvals is a clear sign the market is regaining its footing after a more muted few months and, with the distraction of the stamp duty deadline now behind us, buyers are re-engaging and they’re doing so with confidence.
Stable interest rates and a wider range of more favourable mortgage products are fuelling renewed demand, particularly among first-time buyers and movers looking to capitalise on improving affordability.
We’re heading into H2 with momentum and the fundamentals suggest we’re set for a stronger second half of the year, with sentiment finally moving in the right direction.”
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