Financial Reporter: BoE: remortgage approvals dip in October
Wed 02 Dec 2015
Net mortgage lending increased by 3.6 billion in October, compared to the average monthly increase of 2.8billion over the previous six months. according to the latest Bank of England Money and Credit report.The number of mortgage approvals rose to 69,630 in October compared to 68,874 in September - the secondhighest seen this year.However the number of approvals for remortgaging dropped to 39,629 compared to September's figure of41,163.Total lending to individuals increased by 4.8 billion in October. Gross lending secured on dwellings was 20.1billion and repayments were 17.0 billion.Peter Rollings, CEO of Marsh & Parsons, commented:
"Lending has rebounded after September's downward blip, and mortgage approvals have leaped an impressive17% year-on-year. All the vitals are looking strong, and remortgaging and locking into long-term deals will stillvery much be the name of the game for many existing homeowners awaiting potential interest rate movement in2016.
"These figures only look at October - and George Osborne's package of housing announcements in the AutumnStatement last week will have keyed up a new wave of first-time buyers eager to get their foot in the door. Wemay also see a winter flurry of buy-to-let borrowing before April's stamp duty shake up, as landlords seek toinvest before the additional charge is levied on second homes. The big question as we enter the New Year iswhether the supply of homes will match the increasing demand that's clearly evident in the mortgage market."Richard Pike, Phoebus Software sales and marketing director, said:
"The number and value of mortgage loans over the last three months, as reported by the Bank of England, hasbeen fairly consistent. However, at 19.7bn the value is 10% lower than the 21.8bn estimated for October by theCouncil of Mortgage Lenders earlier this month. I will be interested to see how these figures compare when theCML's statistics are confirmed in December and where the differences lie. The value of loans in August forinstance was lower than in October but higher in number, so will it be number or value, or both?
"Following the recent spending review, and the Chancellor's moves to curb buy-to-let in his bid to increasehomeowenship in the UK, one part of the market which has been most buoyant throughout the year is likely totake a hit in the coming months. Landlords, and would-be landlords, will be considering their position and thefuture viability of buy-to-let."Nicola Georgiou, Managing Director at Freedom Finance, added:"Today's figures show that total lending to individuals has increased by 4.8 billion in October. With consumercredit also rising by 1.2 billion, it seems clear that consumer confidence is continuing to grow steadily. Thedemand for personal loans has increased due to better credit availability, lower interest rates and strongerhousehold finances."