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Interest rate cut drove mortgage sales up during traditional lull

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  • 20/09/2016
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Interest rate cut drove mortgage sales up during traditional lull
The August interest rate cut of 0.25% from the Bank of England helped drive mortgage sales up during the traditionally slow summer period, according to figures released by Equifax Touchstone.

Mortgage sales for August saw a 6.6% increase compared to July with residential and buy-to-let figures totalling£14.1bn at the end of the month.

Buy-to-let figures saw a jump of 9.1% and residential figures grew by 6.1% against July.

This is a stark difference in comparison to the last two years which saw the market drop by 13% in August 2015 and by 18% in August 2014.

Relationship manager at Equifax Touchstone, Iain Hill said: “Following the fall in July mortgage figures and the usual trend of decreasing figures in August, it’s a welcome surprise to see a break in the typical slow summer period.”

This is in contrast to a report that found first-time buyers would be hit with a £6,000 housing price increase making it harder for new buyers to get their foot on the property ladder.

The findings found the regional performance for mortgage sales was mixed with Northern Ireland showing an increase of 41.5% with London lagging behind at just +1.3%.

“The uncertain nature of the market as it tries to navigate the Brexit environment makes this an exciting time to watch where sales will go next. With September already off to a strong start, we could see further growth over the rest of 2016”, said Hill.

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