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Mortgage approvals for house purchase fell in September

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
28/10/2016

House purchase mortgage approvals fell by 15% between September 2015 and 2016, according to the High Street Banking Statistics released today from the British Bankers Association.

The first nine months of 2016 were 3% lower than in the same period of 2015 for purchase business, while remortgaging was 15% higher over the same period, but down compared to September 2015.

Total mortgage borrowing last month was £12bn, 2% lower than a year earlier.

Dr Rebecca Harding, BBA chief economist, said: “The housing market continues to shows signs of underlying weakness. Both house purchase and remortgaging approvals are down on the corresponding figures for 2015.”

Andy Knee, chief executive of LMS, added: “Three months on from the vote to leave the European Union, the latest BBA figures suggest that homebuyers remain in a tentative mood, with the number and value of mortgage approvals in September below the average for the previous six months between January and June before the refendum. House purchase approvals are also lower when compared to September 2015, indicating that the uncertain outlook and continuing squeeze on affordability may have forced some home buyers to put their purchasing plans on hold.
 
“In contrast to the overall market, remortgaging activity has remained relatively stable, with little change in the number of remortgage approvals year-on-year. The overall value of remortgage approvals also experienced little change – enjoying a slight rise between August and September. Record-low mortgage rates have remained the norm since the Bank of England’s cut to the base interest rate, and homeowners have taken advantage of this, with our research showing 85% of remortgagors lowering their mortgage rates in September.”