Mortgage approvals reached an all-time in October for the first time this year, according to latest statistics from Bank of England. This indicates stability in the housing market as a greater number of people are stepping on to the property ladder.
The total number of mortgage approvals for house purchases increased to 67,086 in October 2018 from 65,726 in September 2018.
“Mortgage market activity was broadly stable in October. Households borrowed an extra £4.1 billion secured against their homes in October, which was broadly in line with September but a little above the flows seen earlier in 2018,” the Bank of England said in its report.
The annual growth rate of mortgage lending increased by 3.3 per cent in October. It has been around 3 per cent since late 2016 and remains stable compared to the pre-crisis period.
The number of mortgages approved for house purchase has been broadly stable for the past couple of years. The number of mortgages approved in October is the highest since January 2018. The number of approvals for remortgaging was unchanged on the month at 49,000.
With the Brexit deal expected to be completed in 2019, the market conditions are likely to improve further. Better job opportunities, a stable economy and mortgage availability are driving demand for first-time buyer mortgages.
Mortgage market activity was broadly stable in October. The flow of mortgage lending increased to £4.1 billion in October and mortgage approvals for house purchase were 67,000.