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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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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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