Mortgage approvals up in May

CEO of Octane Capital, Jonathan Samuels, commented:

“Current market conditions are erratic at best and we’ve seen unpredictable monthly movement with regard to the level of mortgages being approved so far this year.

This is largely due to the Bank of England’s decision to keep increasing interest rates, with buyers having to reassess their position in the market, only to return to find the goal posts have moved once again.

As a result, the number of approvals being seen from one month to the next is up and down like a yo-yo and this demonstrates the tricky landscape buyers are attempting to negotiate in order to climb the ladder.”

Managing Director of Sirius Property Finance, Nicholas Christofi, commented:

“The property market is struggling to find its feet at present and while a monthly increase in the number of mortgage approvals will certainly help boost sentiment, it’s likely to be short-lived given we’ve seen a thirteenth consecutive increase to the base rate.

Mortgage market activity also remains significantly lower than this time last year, which highlights just how much the market has cooled in recent months.”

Founder and CEO of easyMoney, Jason Ferrando, commented:

“Despite a promising start to the year, the Bank of England’s aggressive approach to managing interest rates has inevitably dented buyer confidence and this decline in market activity is clear when it comes to the level of mortgages being approved.

While we’ve seen the number of mortgage approvals rally on a monthly basis, they remain off the pace set just a few months prior and some way below last year, with yet another interest rate hike doing little to steady the ship.

As a result, we can expect the muted market activity levels of recent months to persist, as fewer buyers are able to secure a mortgage, while those that can will be restricted in terms of just how much they can offer.”