Mortgage Approvals Hit Four Year High
6th February 2020
6th February 2020
There are many factors which indicate buyers are looking to buy homes, but it is hard to argue with an increase in mortgage approvals. When people apply for a mortgage, it is a statement of intent. A lot of people will feel as though they have an interest in the property market, but without the necessary funds, there is no sense of purpose. However, when a person or household is armed with a mortgage, they are far more likely to be genuine in their buying intentions.
Therefore, an increase in mortgage approvals isn’t just positive news for buyers, and it is good news for vendors too. A lot of vendors lack confidence in the property market, unsure if there are enough buyers in the market. Annoyingly, a lack of supply of homes in the market causes problems, but it is perfectly natural for vendors to look for positive signs before making a move.
In data provided by UK Finance, it appears the number of approved mortgages increased by 20% in December 2019. This was the highest figure in four years, with a total of 46,815 loans being agreed. There was also an increase in remortgaging, which rose by 25% on an annual basis, with the new figure reaching 33,738.
When you also take on board information provided by Zoopla, Rightmove and RICS, it seems as though there has genuinely been an increase in confidence levels across the United Kingdom.
While this is being attributed to a “Boris Bounce” and associated with the General Election, the mortgage approval figures for December indicate that buyers have been taking action since before the big vote. After all, it takes time for buyers to complete their application and for the application to be processed. Therefore, it would be reasonable to assume buyers were keen to arrange a mortgage before the General Election.
This tallies with the thought of many industry observers who believe that many people have decided enough is enough. There has been a pent-up level of tension in the property market, which has now been released. As said above, this is positive news for buyers, but hopefully, vendors will see positive aspects in this information too.
No matter what assistance you need in the property market, we are here to help. We aim to provide you with a decent level of advice and guidance, which enables you to make an informed decision. With Brexit still an issue to consider, and the March Budget looming, there is still a lot for buyers and vendors to consider. Whether you need advice or hands-on help, we are here to assist you.
If you are a Northampton vendor, and you plan on selling your home in 2020, please get in touch. We are pleased to say we have helped many local vendors connect with buyers, and we look forward to assisting you sell your home this year. We can arrange a property valuation for you, so contact us today if this will be of value.