Industry reaction to the latest mortgage approval figures from the Bank of England. The latest figures show that there were 86,900 mortgage approvals in the month of April, reversing the decline seen approaching the original stamp duty deadline in March.
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Market Fueled By The Enthusiasm Of Buyers
Director of Benham and Reeves, Marc von Grundherr, commented:
“We’ve seen the market move at an incredible rate in recent months, fuelled by the enthusiasm of buyers keen to secure a stamp duty holiday saving.
With the extension of the holiday in March, the market rebounded from the previous negative trends seen approaching the initial deadline.
While the appeal of this initiative has started to fade for those looking to transact now, the further stimulus of a government backed 95% mortgage is sure to keep the coals of the UK property market burning bright and avoid any downturn as we come towards the extended deadlines.
At the same time, we’ve seen many lenders reducing rates at pace and should this mortgage war continue, a further market boost is likely despite the end of the stamp duty holiday, in the short term at least.”
A Correction In Mortgage Approval
Managing Director of Barrows and Forrester, James Forrester, commented:
“Despite the fact that many buyers will have now missed the boat where the double-pronged stamp duty holiday extension is concerned, there seems to be no let-up in the insatiable appetite for homeownership across the nation.
However, while we’re likely to see a sustained level of market activity continue, we may well see a reduction in the total sums borrowed, as many buyers opt for a more conservative loan given that a stamp duty saving is now unlikely to materialise.”
CEO of Keller Williams UK, Ben Taylor, commented:
“The market is certainly booming but such a giddy rate of artificial inflation is sure to run short on steam at some point. We expect upward pressure in interest rates to come at some stage next year, at which point, many homebuyers will have to reevaluate their level of affordability and a correction in mortgage approval levels and house price growth will soon follow.”
