Mortgage approvals dip in January

Founder and CEO of easyMoney, Jason Ferrando, commented:

“There’s no doubt that September’s disastrous mini budget and the mortgage sector uncertainty that followed has had a negative impact on the UK property market, leaving a decline in both mortgage approval and house prices in its wake.

However, it certainly seems as though the worst is behind us and we expect to see stabilising mortgage rates drive a rebound in approvals in the coming months, echoing wider industry sentiment that buyers are returning to the market with confidence in 2023.”

Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented:

“The latest decline in mortgage approvals follows the sharp decline seen during the latter stages of last year and it’s only natural that, given the wider economic picture, many buyers are pausing for thought to re-evaluate their position in the market, as they adjust to increasing interest rates and higher borrowing costs.”

CEO of Octane Capital, Jonathan Samuels, commented:

“The current level of mortgage market activity remains some way off the benchmark that we would expect to see at this time of year and it’s clear that many buyers remain deterred by higher mortgage rates, higher living costs and the wider economic landscape.

However, as the year progresses and the herd mentality of the UK homebuyer kicks in, we expect to see a growing level of confidence return. While they certainly won’t be purchasing at the record house price highs seen during the pandemic, this will ensure the long term health of the housing market remains robust.”