Mortgage approvals soar in August

Founding Director of Revolution Brokers, Almas Uddin, commented:

“Mortgage approvals have continued to climb skyward in recent months, despite mortgage rates increasing in line with numerous base rate hikes by the Bank of England.

This has been spurred by a sense of urgency from the nation’s homebuyers, who are keen to secure what remain fairly reasonable rates in anticipation of further increases to come this year.

With a number of lenders opting to cut their product range this week, we can expect to see the volume of mortgage approvals decline in the coming months, purely due to a reduction in consumer choice, particularly higher loan to value products.

However, we don’t expect that this will cause buyer demand to evaporate completely and a robust level of market activity will remain.”

CEO of Octane Capital, Jonathan Samuels, commented:

“The latest mortgage approval figures are certainly positive and demonstrate the continued strength of the market in the face of an increasingly uncertain economic backdrop.

However, they don’t account for the recent turbulence seen within the sector as a result of inflationary pressures and a reduction in product choice, which is sure to dent the number of homebuyers opting to take the plunge in the coming months.”