Just as we are starting to see with UK property prices, mortgage finance approvals are also rising. According to UK Finance, top high street banks’ approval rating for mortgages increased by 9.1 per cent when compared to March of last year. While the property market got off to a rather slow start at the beginning of the year, things have definitely started to pick up towards the end of the first quarter.
The Rise Of Mortgage Finance Approvals
In the month of March 2019, around 66,174 mortgages were approved. The number of mortgage finance approvals in March last year was 4 per cent lower than that of this year. Month-on-month approvals have also seen an increase of 2.9 per cent between the months of February and March 2019. The number of first-time buyers has significantly increased. However, this is thought to be because of the help to buy government schemes that first-time buyers started several years ago. The number of existing homeowners that were looking for new loans is on the rise.
Brexit? Life Goes On
We now have confirmation of an even longer wait before any clarity on the whole Brexit situation, people are moving on with their lives. The British population has decided that enough is enough. They are fed up with putting their buying plans on hold until the Brexit scenario unfolds. Life goes on; People are now actively seeking promising property investments. If the trend continues then the current price sensitive market looks good to alter.
Industry experts are thrilled over the significant rise in mortgage approvals. Experts say it provides a strong indication of how the property market trends in the near future. The increase in mortgage finance approvals is a strong indicator property transactions are holding up despite Brexit fears. Having said that, the market is experiencing longer periods of time for sales to go through. Currently, the UK’s regional differences are quite distinctive.
First-Time Buyers Vs Buy-To-Let Investors
From the very first mention of Brexit, first-time buyers remained unfazed and pursued their property search despite media brouhaha. Speculation became rife on the beginning-of-the-end for buy-to-let investors. Of course, those statements were slightly exaggerated. even so, the property market is now seeing an increase in buy-to-let investors as regional demands are reaching high levels.
As it stands, the property market is unpredictable. The rise in mortgage finance approvals is definitely a step in a positive direction. It is instilling confidence as to how the next quarter will pan out. With mixed messages of high and low stats, it is difficult to decipher exactly what’s in store. As lenders fiercely compete for rates and approval criteria, it remains smiles all around.
Calculate Your Mortgage Financing With these Free Tools