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The May increase in mortgage approvals driven by strong growth in remortgaging according to UK Finance

Latest UK Finance Household Finance Update for May 2018 reveals that estimated gross mortgage lending for the total market in May was £22.2bn, 8.8 per cent higher than the same month a year earlier.

 

Mortgage approvals by the main high street banks in May have also risen, increasing by 3 per cent compared to the same month a year earlier. As in April, increased approval numbers were driven by remortgaging, some 18 per cent more than a year earlier. In contrast, approvals for house purchase were 3.8 per cent lower than the same month a year earlier.

Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said:

“May’s increase in mortgage approvals was driven by strong growth in remortgaging, as a large number of fixed-term mortgages came to an end and homeowners took advantage of a competitive market to shop around for attractive deals. Increased efforts by lenders to contact their customers before their current mortgage deal expires have also contributed to this rise.

“There was modest growth in card spending, reflecting a boost to retail sales amid the good weather over the recent bank holidays and the Royal Wedding celebrations.

“However, the overall economic picture remains mixed, as household incomes continue to be squeezed. This may explain the growth of deposits held in instant access accounts, with consumers increasingly choosing to keep their money close to hand.”

Read the UK Finance Household Finance Update for May 2018 in full click here.

 

 

Allen Walkey

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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