View more on these topics

BBA: Approvals up 11% year-on-year in May

The number of mortgage approvals from the major high street banks was up 10.7 per cent year-on-year in May, according to figures published today by the British Bankers’ Association.

The figures, which look at the major banking groups that represent two-thirds of all mortgage lending, show there was a total of 65,752 mortgage approvals in May, up from 59,386 a year earlier.

Approvals for house purchase increased 24.2 per cent from 29,079 in May 2012 to 36,102 in May this year, while remortgage approvals increased by 16.8 per cent, from 17,694 to 20,675. However, approvals for other secured borrowing, including further advances, fell 28.8 per cent from 12,613 to 8,975.

The average number of approvals over the past six months was 59,776.

The average value of loan for house purchases was £159,200 in May, down from £162,700 a year earlier. The average value over the past six months has been £152,000.

Gross mortgage lending, on a seasonally adjusted basis, was up 14.6 per cent year-on-year, from £7.5bn to £8.6bn. The six-month average for gross lending was £8bn.

Net lending was negative £520m in May, compared with a negative £14m a year before. Net lending has been a negative figure for every month since December.

Capital Economics property economist Matthew Pointon says: “Mortgage approvals are gradually clawing their way back up after five year of very subdued activity, and Government interventions are likely to mean this improvement continues.

“But as recent events in the US highlight, market conditions can change quickly once support is withdrawn, and any house price gains are unlikely to be sustainable.”

Anderson Harris director Jonathan Harris says: “While lending volumes are improving, we remain some way off a sustained recovery in the housing market as caution continues to prevail. However, mortgage brokers and estate agents are still reporting a high level of enquiries so we expect this to continue to feed through to improved official figures in coming months.”

Recommended

HMRC excludes transactional discretionary fees from VAT

HMRC has confirmed transactional fees for discretionary management services will not need to include VAT, following last year’s landmark European Court of Justice judgement. The case involved Deutsche Bank’s discretionary services and whether VAT should be charged for ongoing services and on annual management fees. The European Court of Justice recommended all elements of discretionary […]

11

David Ferguson: What’s your worst piece of obsolete tech?

We are running a campaign where we are asking advisers to nominate the worst piece of obsolete technology: the one piece of kit that just didn’t make the grade and was out of date even before it was launched.  History is littered with things that failed to make the grade. Not just technology, but products, […]

Advisers: Most new assets will be in clean funds in 12 months

Two thirds of advisers expect the majority of new platform business to go into clean share classes over the next 12 months, according to research from Axa Elevate. From a sample of 300 advisers, 52 per cent say they expect more than 75 per cent of new business inflows to be placed in clean share […]

Aegon rolls out online simplified protection offering

Aegon UK has made its simplified online protection offering, ‘Simply Life’, available to advisers across the market. Simply Life was previously offered exclusively to Aegon partner firms but will now be offered to all UK advisers. Aegon UK head of underwriting and claims strategy Simon Jacobs says: “In a market where speed to purchase and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment