Mortgage approvals increase by thousands with remortgage agreements also rising | Personal Finance | Finance

The number of mortgage approvals made to home buyers increased from 56,100 in January to 60,400 in February, according to Bank of England figures.

Approvals for remortgaging also increased, from 30,900 to 37,700 during this period, according to the Money and Credit report.

The annual growth rate for consumer credit slowed from 9.0 percent to 8.7 percent.

However, the data released today comes with a backdrop of a “relatively subdued” housing market in terms of house price increases. According to Nationwide Building Society’s latest House Price Index, property valuations dropped by 0.2 percent month-on-month in March.

Jonathan Samuels, CEO of Octane Capital, commented: “So far this year, the number of mortgages being approved has accelerated considerably and we’re now seeing this initial indicator of market health return to levels not seen since 2022, before the market started to cool as a result of higher mortgage rates.

“This is despite the fact that we’re yet to see an interest rate cut or any kind of buyer initiative introduced by the government, although there’s no doubt buyer confidence has been boosted by the prospect of lower interest rates on the horizon.”

Jason Ferrando, founder and CEO of easyMoney, said: “It was only a matter of time before the market started to find its feet and it would appear that the nation’s buyers have now adjusted to the new normal where the higher cost of borrowing is concerned.

“All signs now point to a far stronger year for the UK property market and while higher mortgage rates remain an obstacle, it’s a matter of when, not if, they start to subside.”

Ruth Beeton, co-founder of Home Sale Pack, pointed out that, while buyer confidence is building in anticipation of lower mortgage costs in 2024, higher demand will put further strain on a transactional process “that simply isn’t fit for purpose in this day and age.”

She continued: “So although the nation’s sellers may find it easier to secure a buyer and for a higher price, they can expect the process itself to drag out for far longer. That’s if the sale doesn’t collapse before it reaches the finish line.”

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