The number of loan approvals for house purchase was 66,569 in July, compared to the average of 67,563 over the previous six months, the Bank of England has revealed.
The number of approvals for remortgaging was 32,983, compared to the average of 32,446 over the previous six months.
The number of approvals for other purposes was 10,853, compared to the average of 11,317 over the previous six months.
Richard Sexton, director of e.surv chartered surveyors, said: “After a tentative start to summer, house purchase lending has returned to robust health. The mortgage market has fully adapted to the introduction of MMR, shown by a second month of healthy house purchase lending. Home lending dipped in April and May, as the introduction of new regulations temporarily clogged up the system.
“Lenders needed to train staff and get used to longer advisory processes as part of adjusting to the new rules. Now that backlog of applications has been processed, mortgage lending is running a smooth course once more.
“A large proportion of house purchase lending was to high LTV borrowers in July – about a fifth of house purchase approvals. Despite the economic recovery, many borrowers are still struggling to put together the deposit they need to purchase property.
“Help to Buy is still needed to support borrowers outside of the capital, particularly in regions where the recovery is still limping rather than racing along. Tailoring the scheme to the individual needs of each region would be one way of focusing support to borrowers where it’s most needed.”
