The number of net mortgage approvals reaches its highest level since September 2022.
There were 61,300 mortgage approvals for house purchases in March 2024, up from 60,500 in February, according to the latest Money and Credit figures released by the Bank of England .
This is the sixth consecutive month in which the number of approvals has increased.
However, between February and March, net approvals for remortgaging with a different lender dropped from 37,700 to 34,200.
With mortgage approvals for house purchases now at their highest level since September 2022, many will be hopeful that the housing market is showing signs of improvement.
“A rise in mortgage approvals overall is a positive move in the market. It is worth noting that fixed rate mortgage pricing fell at the start of 2024, enticing borrowers to grab a deal,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
“The volume of mortgage approvals is at its highest level since the mini-Budget, which just shows the significance mortgage pricing has on the sentiment of borrowers,” she continued.
Rising rates
Despite the increase in approvals, affordability continues to be a major concern for new and existing homeowners as several major lenders have been raising their rates over the past week.
“Since these figures from the Bank of England were captured, mortgage rates have been creeping up and the volatility surrounding future interest rate expectations will keep lenders busy to revisit their pricing,” cautioned Springall.
The average two-year and five-year fixed rate stood at 5.91% and 5.48% respectively on 1 May, compared to 5.80% and 5.39% at the start of April.
