There were 45,723 house purchase loans approved in January, the Bank of England has reported. Although an increase on December’s 42,7190, it was lower than the monthly average of 46,686 for the previous six-month period, leaving mortgage specialists frustrated and unimpressed.
Brian Murphy, head of lending at independent broker Mortgage Advice Bureau, said the slight rise was always likely after a subdued housing market in December. He added: “Unfortunately, many people want to remortgage but can’t because they have insufficient equity or are not deemed an acceptable risk, despite having a good credit history.
“There has been no let-up in lenders’ risk assessment and this will continue to place downward pressure on the mortgage market in the months ahead.”David Whittaker, managing director of specialist lender Mortgages For Business, said: “This is a tentative step in the right direction rather than a leap towards recovery. “The key concern for the Bank of England is what to do with rates, and with every MPC meeting it seems we’re getting closer to a rise. “Until there is a rise in the base rate, though, the mortgage market will languish.”Yesterday, Nationwide reported that house prices tiptoed up 0.3% in February. It said the housing market was treading water.
Thanks to Estate Agent Today for the article.