UK mortgage approvals hit 18-month high

UK mortgage approvals hit 18-month high

The number of mortgages approved to British buyers increased to hit an 18-month high in August, according to the latest figures released this week by e.surv in its Mortgage Monitor. 

The company said that some 69,220 mortgages were given the green light by lenders in August, in a move that could show just how much the market is beginning to improve, as well as how positive those lending in the mortgage market are currently feeling. 

According to the figures, August's data was far ahead of the 63,340 mortgages that were approved in the same month last year, which means that in the space of just 12 months, mortgage numbers have swelled by an impressive 9.3 per cent. 

It is also the highest number of approvals we have seen in the UK at any time in the last 18 months. The last time there was a higher volume of mortgages than in August was in February 2014, when it topped 70,000. 

"Weak inflation and recovering wages mean that more British workers are able to meet the stringent affordability requirements demanded by the new MMR rules and obtain the mortgage they want," said Richard Sexton, a director of e.surv chartered surveyors.

He went on to say that the positivity being seen among buyers, evidenced by the fact more and more are coming to market to buy homes, could continue for some time to come as we see conditions improve. 

"Concerns over an interest rate rise may have helped push some borrowers into acting quickly. However, this is now the third consecutive month of growth, and home lending has been strong since May, now that the uncertainty that surrounded the election has evaporated. Healthier mortgage lending reflects a stronger UK economy and an upturn in fortunes for British buyers," Sexton explained.