Mortgage approvals rebound in February BofE data shows
CEO of Octane Capital, Jonathan Samuels, commented:
“We had previously seen well in excess of 60,000 mortgages approved on a monthly basis throughout the pandemic market boom period. However, this level of monthly buyer activity has been in sharp decline ever since a shambolic September mini budget that thrust the market into uncertainty.
Today’s increase, albeit a marginal one, suggests that the green shoots of buyer demand are once again starting to grow and we expect these green shoots to blossom over the coming months, as we enter what is traditionally the busiest time of year for the UK property market.”
Founder and CEO of easyMoney, Jason Ferrando, commented:
“Today’s uplift in mortgage approvals shows that the spring surge in market activity is underway and while the volume of mortgages being approved is unlikely to return to the highs of last year, an increase in buyer activity bodes very well for the wider health of the property market.
Of course, an eleventh consecutive interest rate hike may yet dampen the enthusiasm of the nation’s buyers, who have already had to contend with the far higher cost of borrowing when entering the market.”
Managing Director of Sirius Property Finance, Nicholas Christofi, commented:
“The first increase in mortgage approvals since August of last year suggests that the frosty market conditions of recent months are now starting to thaw as buyers return to the fold.
However, it’s clear that higher interest rates are taking their toll with mortgage lending continuing to decline and substantially at that.
This demonstrates that although there remains an appetite for homeownership, buyers are treading with greater caution and borrowing less, as they adjust to the changing landscape of the market.”
CEO of Alliance Fund, Iain Crawford, commented:
“Having weathered the period of market uncertainty seen since the closing stages of last year, the nation’s homebuyers are now emerging from their winter boltholes with intent to transact.
It may take some time before this returning buyer activity helps to stabilise house prices, but it would appear as though we have now seen the back of what many previously predicted to be a property market downturn.”
