In a piece of good news for homeowners following the shock of the EU referendum result on Friday (June 24th), the BBA has revealed that mortgage approvals in May have bounced back after April saw a sharp decline, driven by the initial reaction to the introduction of the stamp duty surcharge.
Gross mortgage borrowing reached £12 billion for the month, ten per cent higher than the levels seen in May last year. Net mortgage borrowing was three per cent up on 12 months ago and stronger growth in personal deposits has been seen in recent months. The annual growth for the latter has now reached 4.8 per cent, the strongest rate since July 2013.
Chief economic adviser at the BBC Dr Rebecca Harding said: “The data for May shows a sustained increase in unsecured credit relative to earnings. Consumers are increasingly using short-term borrowing for spending, amid uncertainty around the economy and EU referendum.”
This comes after Council of Mortgage Lenders research found that gross mortgage lending for May had climbed by four per cent to reach £18.2 billion. In April, lending reached £17.6 billion, while in May 2014 it peaked at £16 billion.
Those of you planning on buying your next property will certainly be buoyed up by these figures, despite what’s been going on in the news regarding the EU referendum.
It may be that now’s a good time for you to seek out a York mortgage broker to help you find the right deal for you. With house prices looking likely to fall as a result of Brexit, it could well be the perfect time to start house-hunting again.