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House purchase approvals recover in June – BoE

  • 29/07/2015
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June mortgage approvals for house purchases rebounded from a dip in May to reach 66,582 exceeding the 62,971 average over the previous six months, Bank of England statistics reveal.

In May, house purchase approvals dropped to 64,826 from 68,051 in April.

The amount of remortgages approved in June remained fairly consistent on previous months. June approvals reached 36,620 compared to 36,067 in May and 35,915 in April. The average over the previous six months stands at 33,759.

Gross lending secured on homes was £18.4bn, an increase of £2.6bn on the previous month marking a strong a performance for the month which surpassed the average monthly increase over the last six months of £2bn.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Mortgage approvals in June bounced back to similar levels seen in April, following the resounding election result and fuelled by rock-bottom loan rates.”

Murphy said that even with the holiday season approaching, the market is likely to see a ‘burst’ of transactions continue into the second half of the year following Mark Carney’s comments about an early bate rate rise, as more people look to secure a loan before the curtain comes down on the era of low-cost mortgages.

“Existing borrowers are clearly making the most of these tempting rates with remortgage activity thriving during the second quarter of 2015. Previously, many were put off by the hassle of remortgaging especially in the initial period of adjustment following the Mortgage Market Review. But there are signs consumers are now rushing to replace their existing deals and cut their repayments while they still can.”

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