It was reported by the BBC at the end of last week that mortgage application approvals are on the rise in the UK, according to high street banks. Despite a slow start to the year, UK banks are now suggesting that approvals are on the rise, offering more first time buyers and home movers the opportunity to move onto or upwards on the property ladder.
The Highest Figures For 6 Months
The British Bankers Association (BBA) has released figures which suggest that, in February 2015 37,453 homes were bought whereas in March 2015, 38.751 were purchased. Whilst this is still 14% lower than last year, it is important to understand that this is the highest figure which we have seen for six months.
It is believed that the reason for the number of application approvals is due to low mortgage rates having been introduced over the past few months, with five year fixed-rate deals available for less than 2%.
Mortgage Rates Continue To Fall
At the end of the day, as mortgage rates continue to fall, it is expected that we will see a rise in those applying, however where the confidence comes from is that the approval rate is higher. Just over a year ago, we saw the Mortgage Market Review (MMR) roll out which made it increasingly difficult for many to secure a mortgage. This saw a shake up in the rules surrounding affordability and ultimately, meant that many, who would previously been granted a mortgage, were no longer able to be approved.
With changes like this just twelve month’s old, it’s promising to see the number of applications back on the rise. Of course, we’re still a long way off seeing rates at that which they once were, however if you’re considering either remortgaging or buying for the first time, it’s important that you take the time to speak with a specialist mortgage advisor. In many cases, having the input from a professional advisor can ensure your application is successful and that you’re confident that your circumstances will meet the required eligibility levels.
Affordable Fixed Rate Deals
With a number of different competitively priced fixed-rate deals having rolled out in recent weeks, it’s important that both first time buyers and home movers take these into consideration. By fixing the interest rate for anything up to ten years, it’s possible to know that repayments won’t change at all during this time. As such, from an affordability perspective, it’s now possible to know exactly what will be owed each month and allow borrowers to calculate their overall outgoings.