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Mortgage approval figures rebound in June

  • 29/07/2014
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Mortgage approval figures rebound in June
The number of mortgage approvals grew during June, Bank of England data has shown.

A total of 108,857 property loans were approved in June, which is 8.3% higher than the figure recorded in May.

The value of these loans was also higher than in previous months with £16.4bn completed in the month, against the £15bn secured in May.

The number of loan approvals for house purchase was 67,196 in June, marginally down on the average of 68,240 over the previous six months. The number of approvals for remortgaging was 31,682, compared to the average of 32,786 over the previous half-year.

The number of approvals for other purposes was 9,979, again down on the average of 11,801 over the previous six months.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “We have seen approval volumes on a downwards trajectory for much of 2014 as attention has focused on phasing in the new lending rules.

“Regulators effectively pressed ‘pause’ on 18 months of gradual recovery, but the bounce-back in June suggests that mortgage market activity is now firmly on track.

“Government, regulators and the Bank of England are all impacting on buying patterns this year through Help to Buy and policy changes. Many of the usual rules have gone out of the window in terms of seasonal trends.”

Separate figures from the Insolvency Service found the number of company liquidations in the last three months across England and Wales decreased 15% compared with the same period last year.

However, the number of people who became insolvent in England and Wales increased 5.1% compared to 2013. This is because of an increase of one-fifth in the number of individual voluntary arrangements.

Howard Sears, director of small business investor Astuta, said: “The latest company insolvency statistics are encouraging and reflect an economy that is now on firmer ground.

“A 35% drop in companies entering administration is material and bodes well for the ongoing recovery of the economy.

“Rate rises remain a threat but if the up-cycle is gradual and predictable rather than sharp and staccato, fewer companies may fall through the cracks than originally thought.

“If there’s a problem, it’s that too many companies are still failing to get the finance they need.”

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