Although mortgage approvals are rising again after being slowed by MMR loan tests, house prices are only expected to show a monthly rise of 0.5% for July.
James Skidmore, Head of Mortgages at AAG Mortgage Brokerage, said “The MMR (Mortgage Market Review) has no doubt had a significant impact in the first few months. However, at AAG, we have continued to see the number of mortgage enquiries increasing month on month.”
Data released by the Bank of England showed 67,196 mortgages were approved in June, up 8% on the previous month after four consecutive months of decline.
“It’s encouraging to see UK mortgage approvals increase for the first time since January,” James comments,“it’s an indication that the disruption caused to the market by new affordability rules, may have been temporary as lenders grappled with the changes required to their processes and systems.”
“However, it is interesting that whilst the mortgage market is still thriving, house prices are starting to slow.” James concludes.
Your home or other property may be repossessed if you do not keep up repayments on your mortgage.