UK Mortgage Approvals Rise 4% in June

The number of mortgages approved by high street banks increased slightly in June after four months of decline, figures showed on Wednesday, although experts said it was too early to say new rules on lending have had a long-term impact on the housing market.

Data from the British Bankers Association (BBA) showed 68,121 loans were approved during the month, a 4% increase on May’s figure. Of these, 43,265 mortgages were for house purchases, up from 41,881 in May and a 14% increase on June 2013.

Homebuyers borrowed an average of £163,800 each, and a total of £10bn.

The increase follows several months of falls around the launch of the mortgage market review (MMR) in April which introduced strict affordability tests on borrowers. However, the figure remained below the previous six-month average of 45,057.

The BBA said it was still too early to say how much the falls were a result of delays while new processes were introduced and how much they reflected stricter lending criteria.

Its chief economist, Richard Woolhouse, said: “These figures show that mortgage approvals are rising again after four months of decline. That’s encouraging because those decisions are a leading indicator of what’s happening in the housing market.

“But the jury is still out on exactly how the new rules are affecting customer applications or approvals.”

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza