House buying activity remained stable in September 2018 in the UK with the gross mortgage lending reaching £21.5 billion, according to statistics from UK Finance.
The number of mortgages approved by the main high street banks in September; approvals for house purchases and remortgage approvals were also consistent, indicating buoyancy in the housing market.
UK Finance is the trade association, which represents the finance and banking industry operating in the UK. It represents almost 300 firms in the UK providing credit, banking, markets and payment-related services. The statistics provided by the organisation reflects the health of the UK housing market and the buying trends.
Thousands of prospective home buyers, especially in London, where house prices are high, continue to save money for deposits to get on to the property ladder. While the deposits to be paid vary from borough to borough in London, mortgage approval is linked to a home buyer’s earning capacity and credit history. Consequently, aspiring home buyers tend to save more for deposits.
UK Finance data showed that personal deposits in total grew by 0.9 per cent over the past 12 months. A consumer preference to hold cash for immediate use is reflected in instant access deposit levels being 3.1 per cent higher than last September. Majority of the personal deposits are channeled towards deposits for homes as mortgage approval application processing becomes easier.
Eric Leenders, Managing Director, Personal Finance at UK Finance, said: "The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise."