Mortgages approvals increase in November

Latest Bank of England data has found that mortgage approvals for house purchases rose from 47,900 in October to 50,100 in November.

The report also revealed that mortgage lending to individuals was at net zero in November compared to £0.1 billion of net repayments in October. The annual growth rate for net mortgage lending reached 0.3% throughout the month, the lowest since the monthly report series began in March 1994.

In addition, gross lending increased from £15.9 billion in October to £16.6 billion in November, while gross repayments decreased from £17.2 billion to £15.6 billionn.

The repot also reveals net approvals for remortgaging increased from 24,000 in October to 27,000 in November.

Commenting on the data, John Phillips, CEO of Spicerhaart and Just Mortgages, said “It’s certainly positive to see net mortgage approvals for house purchases rise in November, with positive news around rates helping to encourage activity. With high mortgage maturity, it comes as no surprise to see remortgaging approvals increase. However, this data captures moves with new lenders and doesn’t highlight the high levels of product transfer business. Brokers from across our network have highlighted this as a key theme, as lenders get competitive and put greater focus on retaining existing customers.

“While we are seeing positive progress on rates – with more good news already this year, we cannot overlook the clear affordability challenges facing borrowers. We mustn’t forget the more than a million homeowners still set to remortgage this year too. Rates still remain higher than many are used to and while competitive pricing among lenders is helping, the hope is that a base rate drop will kick in later in the year and help with the heavy lifting.

“As people look to navigate the market and make sense of what it means to them and their individual situation, independent advice from a mortgage broker, with access to the whole of market has never been so important. This is especially true as people look beyond the traditional mainstream path to homeownership and explore opportunities through the likes of shared ownership for example.”