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Coreco Comments: Bank of England Report on Mortgage Approvals

03.01.20

The latest Bank of England Money & Credit (mortgage) data published this morning, showed that the mortgage market continued to be stable.

“Net mortgage borrowing by households was £4.1 billion in November, and the annual growth rate remained within the broad range it has been for the last three years, at 3.3%. Mortgage approvals for house purchase (an indicator for future lending) were unchanged in November, at 65,000, remaining within the narrow range seen over the past two years. Approvals for remortgage fell slightly on the month to 48,400.”

Andrew Montlake, managing director of the UK-wide mortgage broker, Coreco commented, “Mortgage approvals for home purchase in November were surprisingly robust given the distraction of the General Election.

“There’s no doubt that many people saw November as the last chance saloon, a time to get a mortgage agreed before a potentially disruptive election result.

“While mortgage approvals and broader lending volumes will almost certainly drop off in December, we’re expecting an uplift in the first quarter of 2020.

“January will be the real test of consumer sentiment as we approach our departure from the EU.

“While we expect mortgage transactions to rise next year, it would be premature to assume that 2020 will be full speed ahead.

“A huge amount is riding on the outcome of the trade negotiations and so there is still the potential for volatility.”

 

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