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Purchase Mortgage Approvals Steady in May but Remortgage Approvals Fall Again

Tuesday, 1 July 2014

Ray Boulger, of leading independent mortgage adviser John Charcol, comments on today’s mortgage approval numbers from the Bank of England.

“Following comments I made to the Bank at the beginning of this month about the wide divergence between the seasonally adjusted mortgage approval figures announced in its monthly press releases and the actual numbers (which it refers to as “non seasonally adjusted”), it has responded with very credible alacrity by including a link on its press releases to the table on its web site (Table A5.4) which has full a details of mortgage approvals, including tables for the number and sterling value of approvals on both an actual and seasonally adjusted basis.

“The Bank of England web site includes lots of useful data but the sheer scale of the information available means it is sometimes not very easy to find to find specific information. By providing a link to the relevant table, which it is also doing for the various other data in its press release as well as mortgage approvals, it is now much easier to access the actual figures and this will help journalists and other commentators to easily obtain a more rounded picture of the relevant statistics.

“Looking at the actual May mortgage approval figures, both the number and value of purchases show a small increase on both the previous month and May of last year, whereas remortgages continued to fall on both comparators:

 

Compared to April 2014

Compared to May 2013

Purchases - Number

+ 4.1%

- 0.5%

Purchases - Value

+ 5.0%

+ 6.2%

Remortgages - Number

- 9.4%

- 16.1%

Remortgages - Value

- 10.2%

- 11.3%


“The average mortgage size on purchase approvals in May 2014 was £164,055, compared to £153,735 in May 2013, an increase of 6.7%, a little less than the increase in house prices over the period. This probably reflects the fact that a higher proportion of purchases in London are bought without a mortgage, 40% as compared to 36% nationally.

“Over the same period the average remortgage approval has increased by a similar 5.7% from £148,708 to £157,166.

 

Borrowers should contact John Charcol on 0800 71 81 91 or visit www.charcol.co.uk

For further information, please contact:

Ray Boulger

020 7933 9691

07977 277431

Your initial consultation is obligation free. As we offer a bespoke service our charges can vary. Our minimum fee is £495, of which a non-refundable £150 is payable when you make a formal mortgage application. The average fee paid by our clients over the last year was 0.24% of their loan value. (For example, if your loan amount is £300,000 our average fee would be £720). If your circumstances are more complex we may charge a higher fee. Our maximum fee is 1.5% of the loan value. (For example, if your loan amount is £300,000, our maximum fee will be £4,500).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

John Charcol is a trading style of Towergate Financial (West) Ltd which is authorised and regulated by the Financial Conduct Authority.  Registered in England No: 02292688. Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN.

House price data on a quarterly basis provides the clearest indication of overall market trends, smoothing out the monthly volatility caused by the reduced number of monthly transactions used to calculate all house price indices.

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