Mortgage approvals climb for third month in a row
- Mortgage approvals on house purchases for July sat at 65,352 up (+1.2%) from 64,571 in June. This signals three consecutive months of growth.
- Approvals are also up (+4.6%) when compared to the 62,489 seen in July 2024.
- This growth is positive, and there is optimism for continued growth in the coming months, especially if further bank rate cuts materialise and lenders continue to lower mortgage rates.
Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:
“Another monthly increase in mortgage approvals, and the third in a row, provides further evidence that momentum in the market is continuing to build. Crucially, approvals have remained above the 60,000 mark since March of last year, which underlines the resilience of buyer demand even against a challenging backdrop.
A number of recent policy changes are already helping to sustain this momentum. The decision to make the Mortgage Guarantee Scheme permanent has given lenders additional confidence to back buyers with smaller deposits, while adjustments to loan-to-income caps have provided more flexibility across the lending landscape.
Looking ahead with affordability steadily improving, we expect to see activity continue to gather pace over the remainder of the year.”
CEO of specialist lender Octane Capital, Jonathan Samuels, commented:
“A third consecutive monthly increase in mortgage approvals is a strong indicator that confidence is returning to the market, at least on the side of the nation’s homebuyers.
The overarching air of stability that has enveloped the mortgage market landscape over the last year or so highlights the strength of appetite amongst the nation’s homebuyers and it’s this demand which is fundamental to fuelling the wider performance of the property market.
At the same time, we know that many borrowers fall outside the parameters of the mainstream market, whether due to complex circumstances, time pressures, or specific funding needs. In these instances, specialist finance is proving invaluable, offering the agility and tailored solutions required to keep transactions moving, for example, in the case of a chain-break.”
Colby Short, Co-founder and CEO of GetAgent, commented:
“The latest rise in mortgage approvals will only bring further reassurance to the nation’s homebuyers and sellers that now is the time to act.
The message we’re hearing from agents across the country is that buyer activity is building, and there’s a growing appetite to transact. It’s only a matter of time before this front-end demand starts to convert into transactions, further improving market health and helping to keep house price growth robust.”
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