Housing market buoyant as mortgage lending continues to swell
Monthly mortgage approvals reached a 19-month high in August, according to official Bank of England statistics. This continued growth in lending comes after the Land Registry also confirmed house prices in England and Wales are on the up.
Representing a 20% leap from lending levels seen in November 2014, 71,030 loans were approved for house purchases in August – says the Bank of England report. In comparison, the monthly average for the six preceding months stood at 65,600. At the same time, total net mortgage lending reached its highest point since May 2008 – rising by £3.4 billion in August.
Shortly before these figures were published, the Land Registry revealed that August also saw a 0.5% increase in house prices for England and Wales – bringing the average to £184,682.
It’s thought that record low interest rates encouraged high numbers of buyers to apply for loans and seek out property for purchase during the summer. But, following suggestions that rates could be about to climb, many are now moving away from variable deals and ‘locking in’ to competitively priced, fixed rate arrangements.