Obtaining a mortgage can be difficult

A figure by itself doesn’t tell you the full story but there is no denying that many people are happy to see mortgage approvals on the rise. This is why the figures for January will have been of benefit. There was a total of 40,117 mortgages approved in January of 2018, which was a significant increase in the 36,085 approvals in December of 2017. The December figure was the lowest figure since April of 2013. One leading mortgage specialists said that the 11% increase was largely down to the fact that people were taking advantage of mortgage deals that were made available at the end of 2017.

It is important to remember that there were some big factors impacting on the property market near the end of 2017. Ongoing Brexit negotiations and a lack of houses in the market have been discussed for a lengthy period but let’s not forget that the Bank of England base rate rose and there was the removal of stamp duty for first-time buyers purchasing property at less than £300,000. These factors impacted on the market and the base rate change led many mortgage lenders to provide new products. While the base rate changes impact on the market, some lenders see the opportunity to make a commercial decision, perhaps enticing new customers in, and therefore, there was an increased level of activity in this area of the market.

Pleasing to see mortgage approvals rising

Given the difficulties in obtaining a mortgage, it is pleasing to see that approvals are on the rise. No doubt some people will claim this is a victory for the removal of stamp duty for many first-time buyers but there is nothing, yet, to suggest this was the reason for the increase in approvals. In the long-term, removing an up-front cost from the property buying process will hopefully allow buyers to raise more of a deposit, so it could be a factor, but many issues impact on the mortgage market.

Buying a home is always a testing time and it makes sense to call on the experts for help. No matter what stage you are at with respect to the property market, and mortgages, call on Austin Property Services for the best level of guidance.