Is the level of UK mortgage approvals important in 2018?
The strong level of interest in the property market means that people are always looking for signs or indicators that things are improving in this market. The key figures people and specialists consider are the price of property and the volume of sales. However, there are other issues to consider when examining the market and it is easy to see why the volume of mortgages being approved is a factor that people hold an interest in. At the start of 2018, there was an increase in the number of mortgages being approved in the UK.
This news doesn’t necessarily mean that more people are buying homes, after all, not every property deal is concluded. However, if the number of mortgages being approved is increasing, it is a suggestion that there is positivity in the property market. If you are looking to sell your home, the more people who are able to buy a home, the better. Also, if UK mortgage lenders are approving an increasing number of mortgage applications, this would suggest that they have confidence in the market.
There are many things to consider with the property market and UK mortgage approvals
As is often the case with the property market, there is a need to caveat predictions and suggestions. A rising number of mortgage approvals should be considered as a positive thing, but the true merit of this outcome will depend on the volume of people applying for mortgages. If there is a significant increase in the number of people applying for mortgages but the rate of UK mortgage approval is only increasing by a minimal amount, the outcome may not be as positive as first thought. Given the stamp duty cut for first-time buyers purchasing property for less than £300,000; it is likely that there will be an increase in the number of people who hold a genuine interest in buying property, but many of these people may not be deemed suitable for UK mortgage lenders.
There are other signs of positivity in the market though. The January 2018 figures, provided by the Bank of England, saw a six-month high for mortgage approvals. The December 2017 figures were at a low level, although this isn’t to be unexpected for a December, but the fact that the mortgage approval number has risen compared to the past half a year should be viewed as a positive sign.
Hopefully there will be continued positivity in the property market
In January of 2018, the number of mortgage approvals stood at 67,478 while in December of 2017, the mortgage approval figure was 61,692. In November of 2017, the figure was 65,315. With so many big factors still likely to influence the market, with Brexit, higher interest rates and the stamp duty cut, there is no guarantee that this positivity will continue throughout 2018, but it is a strong starting point.
If you are keen to stay in touch with the latest property news and mortgage market developments, make sure you connect with Williams of Petersfield. We aim to ensure you are fully informed, regardless of the next move you make in the property market.