Mortgage approvals remain at record highs despite market uncertainty

UK Finance reported mortgage approvals eased back in May after rising markedly to a 26-month high in April, but remained above the levels seen just before the extension of Brexit from late-March to end-October. 

Mortgage approvals at 42,384 in May also remained above the 38,000-40,000 range that had previously largely held since the beginning of 2018.

Managing Director of One 77 Mortgages, Alastair McKee, said:“The latest mortgage approval numbers, whilst a smidgeon below forecast, have remained at a very healthy level indeed. In fact, along with the previous month, they represent some of the highest numbers since March 2017.

“Buyers are evidently no longer being deterred from the market and indeed are seeking mortgages at almost record numbers. The latest figures also represent the strongest June performance since 2015 and one has to ask, how strong would the property market be without the current headwinds of Brexit uncertainty and, arguably, an even more uncertain prime ministerial race?”

Director of Benham and Reeves, Marc von Grundherr, said: “We’ve long predicted a post-Brexit bounce in the UK property market and low and behold we are seeing this already in today’s mortgage data.

“As Brexit becomes wearing for would be home buyers, they are beginning to jump in with both feet resulting in more mortgage approvals than we have seen in all but one month since 2017.

“This will only be a positive thing for the market as heightened demand will reverse the previous price growth declines we’ve seen across much of the market.”