Mortgage approvals on house purchases for June slipped to 59,976, down marginally (-0.3%) from 60,134 in May, data from the Bank of England reveals today.
However, they remain considerably higher (+11.7%) than the 53,709 seen in June 2023.
June marks the third consecutive monthly decrease (since the last increase in March).
Despite this, there is optimism for mortgage approval increases in the coming months, especially if bank rate cuts materialise this Thursday, although this may not materialise until the Autumn.
INTEREST RATE CUTS
Jonathan Samuels, Octane CapitalJonathan Samuels, Chief Executive of Octane Capital, says: “We’ve seen a marginal dip in mortgage market activity in the months leading up to the general election, although the extent of this reduction has been very minimal, with mortgage approvals remaining in or around the 60,000 mark on a monthly basis.
“Now that the political dust has settled we expect to see the nation’s buyers returning to the fold and this increase in activity should only strengthen as the prospect of an interest rate cut looms ever closer.
“We’re also seeing lenders act in anticipation of a reduction in the base rate, with the average daily swap rate already starting to decline in recent weeks.
“This is a leading indicator that the mortgage rates currently on offer could soon start to reduce, if they haven’t done so already.”
Jason Ferrando, easyMoneyJason Ferrando, Founder and Chief Executive of easyMoney, adds: “Despite a momentary pause due to the noise of a snap election, mortgage approval levels have remained largely robust in recent months.
“This has provided a strong foundation for further growth.
“With the election now behind us, we expect there will be a significant uplift in the number of buyers looking to make their move over the coming months.
“This will only be intensified as and when interest rates are reduced.”
