Number of UK property mortgage applications hits record high

Number of UK property mortgage applications hits record high [Photo: Courtney Keating via iStock]

Mortgage approval rates are continuing to climb across the UK, with the number of people being given the green light for lending in order to get onto the property ladder hitting a new record this year. 

According to the latest findings published by Intermediary Mortgage Lenders Association (IMLA), the second quarter of this year has seen a surge in successful applications. It said that in the three-month period, as many as 88 per cent of the mortgage applications done through intermediaries were approved. 

This was an increase of 13 per cent when compared to the same quarter a year ago, and shows that there is a real push for homeownership in the UK, with lending being a strong part of this. 

The surprising thing is that this comes at a time when the property market as a whole was thought to be under pressure from the various factors causing political uncertainty across the UK. In spite of political happenings like Brexit and the hung parliament in quarter two, however, the market is now enjoying its strongest period for approvals ever recorded. 

And this is a trend that is likely to continue for the rest of the year as well, with intermediaries increasingly confident about what the future holds for the mortgage lending market in the UK. The survey shows that as many as 96 per cent of those surveyed believe the outlook is bright for mortgage borrowing.

"While the second quarter of 2017 was dominated by political speculation and campaigning, any resulting uncertainty was not enough to send the mortgage market and the determination of aspiring home owners off their course," said Peter Williams, executive director of the IMLA.

"The percentage of successful applications continued to grow across the board, a testament to the ability of the intermediaries to match consumers with suitable products in what is an increasingly complex marketplace," he added.