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Mortgage loan approvals remain flat

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The number of mortgage application approved in January has remained flat, figures from the Bank of England have shown.

The central bank published its money and credit data for January which showed 60,786 house purchase loans were approved during the month.

This was a slight increase on the 60,349 approvals recorded in December but below the six month average of 61,666.

Remortgage approvals in the month were 31,640, down from the average of 32,044 recorded over the previous six months.

Falling mortgage rates across the market also saw the interest rate on outstanding mortgages fall by 0.01% to 3.17%.

Brian Murphy, head of lending at Mortgage Advice Bureau, said the market would bounce back in the coming months.

“Mortgage activity traditionally slows around the turn of the year, so a slight dip in overall loan approvals during January is not unexpected,” he said.

“Nevertheless, lenders have launched some very attractive mortgage rates in recent weeks, which mean that many people who haven’t considered remortgaging recently have a strong incentive to re-think. Mortgage application figures for January indicated a surge of interest in switching loan, which can often involve relatively little effort for significant reward.”

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