The number of mortgage approvals in August 2018 was 2.7 per cent higher than the previous month (July), as market conditions were in favour of the house-buyers.
The latest Mortgage Monitor from e.surv, one of the UK’s largest residential chartered surveyors, found that there were 66,543 mortgages approved during August (seasonally adjusted). This is 2.7 per cent higher than the approval level recorded in July, 2018.
While unseasonably hot weather is often thought to cause a slowdown in the property market, as potential buyers spend their time enjoying leisure activities, this does not appear to have been the case in August.
“Perhaps the more favourable housing market, where prices have stopped rising as quickly as previously, has tempted more buyers into the market, particularly first-time buyers,” e.surv report said.
Data shows that the proportion of mortgages approved to borrowers with small deposits, including many first-time buyers, increased between July and August. About 22.8 per cent of all loans went to this market segment, higher than the 22.1 per cent recorded a month ago.
The Bank of England made the historic step of raising the base rate to 0.75 per cent, its highest level since 2009, on August 2. This may also have prompted increased levels of activity in August, as borrowers try to lock in a low fixed rate deal while borrowing is still relatively cheap.
Richard Sexton, a Director of e.surv Chartered Surveyors, comments: “While many Brits were spending their time in the garden and at the beach, others were finding their dream home this month. August is traditionally a quiet month for the UK’s housing market but activity remained strong this year.”