Mortgage approvals at highest level for a decade
Impending Brexit deadline and low interest rates are powering the rise
Mortgage approvals have risen to the highest monthly level in more than decade, despite uncertainty over Brexit.
UK Finance says there were 95,126 mortgages approved by the main high street lenders in July, the highest since the corresponding month in 2009.
Mortgage approvals for home purchase were up 16.4%, with remortgage approvals increasing by 19.4% on the same month a year earlier.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Speaking to Sky News, the chief economic adviser to EY Item Club, Howard Archer, said that the impending Brexit deadline might be driving the rise.
“It is possible that mortgage activity is being lifted by some people looking to complete their house purchases before Brexit occurs on 31 October, given the major uncertainties as to what will actually happen then,” he said.
Andrew Montlake from mortgage broker Coreco agreed, telling The Mirror the increasing likelihood of a no-deal Brexit had “clearly incentivised people to act”.
However, he added: “Remortgages were the driving force of the rampant activity levels in July, with households taking advantage of the exceptionally competitive mortgage rates available.”
This is Money points out that mortgage rates are currently at “historic lows,” as “Brexit-related uncertainty” appears to be having “an impact on the types of loans that borrowers are plumping for”.
Analysts say that house prices remain “soft” and look unlikely to rise by more than 1.5% this year. Data released by the Office for National Statistics and HM Land Registry found house prices fell in London, the South East and South West in June compared to 2018.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Death toll rises in LA fires as wind lull allows progress
Speed Read At least 24 people have died and 100,000 people are under mandatory evacuation orders
By Peter Weber, The Week US Published
-
Today's political cartoons - January 13, 2025
Cartoons Monday's cartoons - mountains of paperwork, throwing fuel on the fire, and more
By The Week US Published
-
The revival of absinthe
The Week Recommends The once-banned 'green fairy' is back in demand in cocktail bars around the UK
By Irenie Forshaw, The Week UK Published
-
Why au pairs might become a thing of the past
Under The Radar Brexit and wage ruling are threatening the 'mutually beneficial arrangement'
By Chas Newkey-Burden, The Week UK Published
-
Brexit: where we are four years on
The Explainer Questions around immigration, trade and Northern Ireland remain as 'divisive as ever'
By The Week UK Published
-
Is it time for Britons to accept they are poorer?
Today's Big Question Remark from Bank of England’s Huw Pill condemned as ‘tin-eared’
By Chas Newkey-Burden Published
-
Is Brexit to blame for the current financial crisis?
Talking Point Some economists say leaving the EU is behind Britain’s worsening finances but others question the data
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published