House purchase lending hits 18-month high in August
- August sees 69,220 house purchase approvals, up 9.3% year-on-year from 63,340 in August 2014
- On a monthly basis house purchase approvals rise 0.7% - the third consecutive month of growth
- Post-recession record for small-deposit lending in August, as 12,000 of these mortgages approved
The number of mortgage approvals for house purchase has risen to an 18-month high, as the end of summer saw a surge in mortgage lending, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
There were 69,220 house purchase mortgage approvals in August. This is 9.3% higher than the 63,340 approved in August last year, and the highest monthly number since 70,239 in February 2014 – 18 months ago. Compared with July, the number of house purchase approvals has risen 0.7%, from 68,764 approvals. It marks the third consecutive monthly rise in approvals, with mortgage lending steadily improving every month since the General Election in May.
This improvement also comes despite growing certainty over the likely course of interest rates in the UK, with the Governor of the Bank of England, Mark Carney, reporting that global economic uncertainty – in particular the slowdown in China’s economy – is likely to have little impact on when the MPC chooses to raise the base rate from 0.5%.