Improved UK mortgage approval rates set to restore momentum for financing companies
The UK’s property market has been feeling the wrath of Brexit for some time now. Whether it’s causing house prices to fall in certain areas, increase in others, or putting off buyers and sellers alike. The political instability is taking its toll on all aspects of the sector. But it’s not all doom and gloom – look at the improved mortgage approval rates.
Financing companies are one party that are significantly affected by the changing pace of the market. They’re left fighting for business when the market slows and some of the first to feel the benefits of an upwards turn.
A slow market = slow business
In the current problematic market, a lot of buyers and sellers are holding off. They are waiting for a final Brexit decision and a sense of stability.
As a result, lenders are left fighting for business. With markedly fewer house sales going through, companies are needing to fight off their competition. There’s less business to go around. Only a select few finance companies are able to maintain normal operation. While others are left to take the hit of low mortgage approval rates.
Back in 2014, UK mortgage approvals hit around 48,000. Recent figures haven’t come close to hitting these numbers since talks of a referendum began.
In April of this year, mortgage approvals jumped from 40,500 to a little under 43,000. This implies that the market could be due an upswing. Considering the stunted market of recent years, improvements like this are a big comfort. It could be a sign that a slow market is starting to get its momentum back.
Figures continued to look promising in May. There were almost 31,000 first-time buyer mortgages, up 0.5% when compared to May of last year.
When looking at remortgage rates, the future looks even brighter. There were over 21,000 new completions, with additional borrowing up 19.8%. And buy to let remortgages were up 2% for the year at 15,000.
After a period of relative inactivity, these positive figures suggest the property market may be on the slow road to recovery. What this means for finance companies is more steady business and less of a need to fight off the competition.
At Agent Hub, our system can help broaden your connections and contacts. If you’re a finance company wanting to make the most of the market’s improving momentum, or broaden your options when times are slow, we can help. Our system is completely customisable and allows you to network with property industry professionals all over the country. If you’re interested in hearing more or have any questions, contact us on 0203 637 6811.