The Bank of England has reported a decrease in mortgage approvals for August.
The number of loan approvals for house purchase was 60,058 last month, compared to the average of 66,734 over the previous six months.
Matt Andrews, managing director of Bluestone Mortgages, said: “Even though today’s lending figures may show a slight softening in demand, they also confirm that growth remains broadly consistent. This should reassure many that the market is not experiencing the post-referendum turmoil that some scaremongers predicted, and is instead simply showing the effects of the summer lull.
“As momentum in the housing market begins to build, brokers will have a vital role to play in helping their customers find the best deals available, depending on their individual circumstances, whatever they may be. However, self-employed customers, contractors with inconsistent cash flows, or those who have an adverse credit history, for example, do not always fit into mainstream banks’ typical lending criteria, and yet are often entirely worthy of credit.
“It is these customers who are most in need of a deeper underwriting experience to ensure their situation is fully understood. The UK workforce is increasingly shifting to include more contractors and freelancers, and amidst this changing dynamic, it is paramount that lenders’ decisions are made on a case by case basis so that this growing pool of legitimate borrowers is catered for.”
