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Bank of England stats hint at mortgage market improvement

UK Residential Homes Houses London 480Mortgage and remortgage approvals showed good growth in July after three flat months, according to the latest figures from the Bank of England.

The Bank says there were 68,689 house purchase approvals in July, up from 65,318 in June. The figure for May was 65,574 and April 65,140.

The value of the July approvals was £12.4bn, up from £11.9m in June, £11.7m in May and £11.8m in April.

Remortgaging in July accounted for 46,231 transactions and £8.1m by value.

The June figures are 44,838 and £7.9bn. May’s statistics are 44.838 and £7.9bn.

All the figures are seasonally adjusted.

OneSavings Bank sales and marketing director John Eastgate says: “Mortgage approvals have recovered from last month’s lows despite persistent economic uncertainty. This is impressive given the combination of inflation and low wage growth, although the low levels of purchase activity should be seen as an indicator of still fragile consumer confidence.”

LMS chief executive Andy Knee says: “Remortgage approvals soared to their highest level this year as competitive deals offered by lenders enticed homeowners to make the switch. Remortgage approvals are also significantly higher than a year ago – the result of months of rock bottom mortgage rates – which have enabled homeowners to save more on their monthly repayments.”

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