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.