The Bank of England has reveal that in June 2018, the annual growth rate for mortgage lending remained unchanged at 3.2%.
It has now been around 3% since late 2016.
Although this is above the growth rate between 2009 and 2013, it remains modest compared to the pre-crisis period. In value terms, households borrowed an extra £3.9 billion secured against their homes in June, which slightly exceeds the average of the past year.
The number of mortgages approved for house purchase increased a little in June, to 66,000, and were close to their average since late 2013.
The number of approvals for remortgaging fell 7.3% in June to 48,000. Despite this fall, remortgaging approvals remain broadly in line with the average over 2018 so far.
Matt Andrews, managing director of mortgages at Masthaven, said: “With mortgage approvals holding steady, it’s clear that consumer appetites remain strong as borrowers take advantage of the various competitive rates and products available on the market. Although remortgaging fell in June, it still represents the bulk of this activity, largely due to the anticipated Bank of England rate rise. While timescales for this change aren’t clear, brokers should see this as an opportunity to reengage with their back-books.
“For example, the self-employed is a category that will benefit hugely from having these conversations with brokers. These individuals require bespoke advice that is based on their individual circumstances, as well as access to a more common-sense approach to lending. This will help this group to secure a new mortgage before the impending rate rise, which will only add to the overall growth of consumer borrowing.”