Mortgage approvals soar to highest levels since 2007

The latest mortgage approvals figures from the Bank of England show that approvals climbed to a huge 91.5k, up from 85.53k on the previous month.

Managing Director of Enness Global Mortgages, Hugh Wade-Jones commented: “Prospective home buyers have continued to fuel the furnaces of the UK property market with another huge uplift in mortgage approval figures.

“The highest rate of approvals since 2007 tells you all you need to know about the dramatic return to form currently being seen, as buyers are returning in their droves ahead of the stamp duty holiday deadline.

“This is despite the fact that lenders have started to penalise the applications of buyers they consider to be in more changeable circumstances such as the self-employed or those heavily reliant on commission. At the same time, first-time buyers have also seen the range of products open to them dwindle with many required to stump up larger deposits to secure a mortgage.

“However, this tightening of the belt is yet to cause any dent in top-level market activity and mortgage approval figures are soaring. This growth has been maintained by a high level of deals that continue to be done by second and third rung buyers, in particular.

“We’ve also seen a heightened degree of activity from international buyers and those at the very top price thresholds who have seen the improving health of the regular market as their cue to act.

“With the tank essentially full and with such huge numbers of buyers still entering the fray, it should be some time before we see the market run out of fuel even with a more selective mortgage approval process in place.”