August mortgage approvals remained steady

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UK Finance has revealed that gross mortgage lending across the residential market in August 2019 was £24 billion, 3.2% lower than in the same month in 2018.

There were 85,931 mortgages approved by the main high street banks in August 2019. Mortgage approvals for home purchase were 3.2% higher, remortgage approvals were 0.1% higher and approvals for other secured borrowing were 0.4% lower than in the same month a year earlier.

Kevin Roberts, director of Legal & General Mortgage Club, said: “Households continue to take advantage of the exceptionally competitive mortgage rates available. At the same time, schemes such as Help to Buy and shared ownership are helping to ensure that new borrowers can meet the necessary affordability requirements to buy their first property, while also securing a great value product.

“Whether it’s a first-time buyer, second stepper, or someone seeking a mortgage into retirement, using an independent mortgage adviser is always a good idea. With access to nearly six times more products than going direct to a lender, advisers are uniquely placed to direct individuals towards the products that best meet their particular needs.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Mortgage approvals for home purchase are always a good lead indicator of transactions and activity in the coming months. These numbers demonstrate once again the overall resilience of the market, despite considerable political uncertainty, although growth is considerably lower than last month which shows a steady rather than spectacularly increasing market.

“On the ground we are seeing a market still in limbo awaiting direction but nevertheless getting on with buying and selling albeit at more competitive price levels and even if the overall transaction time is lengthening.”

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