Tale of two mortgage markets
Latest figures from the Council of Mortgage Lenders (CML) tell a tale of two contrasting mortgage markets, with August showing a general upward trend in the number of approvals for first-time buyers and home movers, while the number of remortgages continues to decline.
Home loan approvals for first-time buyers were up by 32% on the same time last year, although the figures show a slight decline of 5% on July, which estate agents put down to seasonal ups and downs.
Mortgage data for home movers also confirmed the upsurge in house purchase activity, with the number of approvals showing a year-on-year increase of 27%.
This again represented a slight seasonal downturn of 6% on the figures for July. Nevertheless, mortgage activity has now risen to twice the level it was at the start of the year.
By contrast, demand for remortgages has slumped by nearly 60% in the last year, as homeowners struggle to find alternative attractive deals in a low interest rate environment or that they are presented with more restrictive mortgage conditions.
Estate agents have now seen several months of consistent market improvement and are very clearly beginning to see the positive effects of the Bank of England's drastic measures to help get the country's housing stock moving again.