Latest news with #mortgageapprovals
Daily Mail
5 days ago
- Business
- Daily Mail
Property market 'strongest in three years' in first half of 2025
The nation's property market was the strongest it has been since 2022 in the first half of this year, fresh analysis shows. Property transactions and mortgage approvals hit a three-year high in the first half of the year, analysis by estate agent comparison website GetAgent reveals. The figures were boosted by a hike in stamp duty in April, which led property buyers to rush to complete before the deadline. However, GetAgent said the numbers of new mortgages approved had 'remained consistently strong' after that, 'suggesting plenty of buyer appetite to drive transactions through the remainder of the year'. This was in part because of mortgage lenders loosening their affordability rules, a change which has benefited first-time buyers. An average of 63,866 mortgages were approved each month between January and June, its analysis of HM Revenue and Customs and Bank of England data showed. In addition, 103,917 property transactions completed each month between January and June, which GetAgent said was the strongest level of activity seen in the property market since 2022. This fell towards the end of the period, with 93,530 transactions completed in June according to HMRC. Colby Short, chief executive of GetAgent, said: 'It's clear many remain confident in the market, with about half of the introductions we facilitate proceeding to list within six months.' Buyers had been enjoying reduced stamp duty bills since 2022 but the tax-free allowances and rates reverted on April 1 as Chancellor Rachel Reeves failed to extend the tax holiday in her inaugural Budget. The so-called 'nil-rate threshold' – at which stamp duty starts to be charged – were lowered from £250,000 to £125,000. First-time buyers could previously buy a £425,000 property without paying stamp duty but this has been lowered to £300,000. Justin Moy, of Essex-based mortgage brokers, said: 'Much of the increased activity would have been driven by the desire to buy before the stamp duty changes in April, with both first time buyers and homemakers looking to cash in before their cost to move increased substantially. 'Whilst activity has calmed down over the last few months, we are starting to see renewed enquiries fuelled by improved mortgage lender affordability.' Mortgage affordability boost A handful of major lenders have relaxed their mortgage affordability rules in recent months, which means homebuyers can now potentially borrow tens of thousands of pounds more. HSBC's relaxation of affordability rules, for example, means the average first time buyer will be able to borrow some £39,000 more. Moy also said mortgage rates are reasonably settled for the rest of the year, so anyone holding out for a better deal will start to make moves, which will spark a steady uptick in mortgage approvals and sales over the coming months. The average two-year fixed-rate deal was 5 per cent on 8 August, while an average five-year deal was 5.01 per cent, according to rate scrutineer Moneyfacts. This comes as house prices in July had their biggest monthly rise of the year so far, according to Halifax, as mortgage rates keep falling and banks offer bigger home loans. The mortgage lender said the average price went up by 0.4 per cent in the month of July, making the typical home worth £298,237. This is compared to £297,157 in June. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
The Independent
29-07-2025
- Business
- The Independent
Remortgaging approvals rise amid ‘unusually high' housing market activity
Remortgaging approvals reached their highest monthly total in more than two-and-a-half years in June, according to Bank of England figures. Some 41,800 approvals (which only capture remortgaging with a different lender) were recorded in June. This was the highest number since October 2022, when around 50,000 remortgaging approvals were recorded. Mark Harris, chief executive of mortgage broker SPF Private Clients, said the rise is a sign 'that borrowers are keen to shop around for better deals even if it means the hassle of applying to another lender'. Mortgage approvals for house purchase also ticked upwards, with around 64,200 approvals made to home buyers in June – the highest figure since March this year. Many mortgage lenders have recently relaxed their rules to allow some borrowers to potentially take out bigger loans. Richard Donnell, executive director at Zoopla, said: 'Demand for mortgages to buy homes increased in June as stable mortgage rates and changes to mortgage affordability encouraged more buyers to agree home purchases. 'Zoopla data shows unusually high levels of housing market activity for the early summer, with sales agreed up 8% on last year and 11% more buyers in the market. 'While activity levels are higher, this isn't feeding into house price inflation, which is slowing. We expect increased housing activity to support demand for mortgages in the rest of the year.' Nathan Emerson, CEO of property professionals' body Propertymark, said: 'The Chancellor's recent Leeds Reforms sent a positive signal to the mortgage market, which should encourage many lenders to focus new products and services towards those on lower incomes to help them take their first step on to the housing ladder.' Lucian Cook, head of residential research at Savills, said: 'Changes in the way mortgage regulations are being applied have the capacity to free up more mortgage lending among both first-time buyers and home movers, especially as we see further interest rate cuts. 'We anticipate that mortgaged buyer demand will pick up gradually, heading into early autumn. However, for momentum to truly build, households must feel more confident not only in their personal finances but also in the broader economic environment.' Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'In context, none of these moves are earth-shattering. Approvals for purchases came in at 64,200. Last year, approvals averaged 62,700 a month. 'So far this year, they are averaging 64,400. The year before the pandemic, the 12-month average was 66,700. It means this is a relatively steady set of figures.' Looking at non-mortgage borrowing, the annual growth rate for consumer credit increased to 6.7% in June, from 6.5% in May. Within this, the annual growth rate for credit card borrowing rose to 9.7%, from 9.3%. Karim Haji, global and UK head of financial services at KPMG, said: 'The increase in consumer borrowing highlights that some households may still be relying on credit to manage day-to-day expenses. With the full impact of higher remortgage payments now being felt by many, financial strain remains a key concern. 'June's rise in mortgage approvals and remortgaging activity reflects growing borrower confidence amid increasing competition between lenders. Despite lingering cost-of-living pressures, more households are re-entering the market, either to secure better remortgage deals or take advantage of slightly improved affordability conditions.' John Dentry, product owner at the Current Account Switch Service (Cass), said: 'While borrowing can be a useful money management tool, it's critical the associated risks are fully understood.' Households' deposits with banks and building societies increased by £7.8 billion in June from May, following net increase of £4.3 billion in May from April. This was partly driven by households depositing an additional £3.6 billion into Isas. Adam French, head of news at said: 'The sharp rise in cash Isa deposits is a clear sign that rumours of Isa reform are influencing saver behaviour. With talk of slashing the annual cash Isa limit from £20,000 to £4,000, people have been rushing to use their allowances while they still can. It's a textbook example of policy speculation driving real-world financial decisions. 'After years of frozen tax allowances and rising interest rates pushing more savers into paying tax we're seeing a scramble for tax efficiency, and the prospect of that shield shrinking has understandably caused concern.' Cash Isa limits were recently left untouched in Chancellor Rachel Reeves's Mansion House speech, although the Government is expected to continue talking to industry members and others about the options for reform, with a broad consensus that the UK's savings and investment culture needs to be encouraged. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'While June's uncertainty in the domestic and global economy may have encouraged some savers to top up their savings to protect their finances, others may have been trying to capitalise on higher savings rates while they were still around.' In June, UK non-financial businesses repaid, on net, £2.5 billion of loans to banks and building societies, including overdrafts, compared with £8.6 billion of net borrowing in May, according to the Bank's report. Within this measure, big non-financial businesses repaid, on net, £2.8 billion, compared to £8.3 billion of net borrowing in May. This was the highest net repayment from large businesses since June 2023. The annual growth rate of borrowing by large businesses decreased to 6.7% in June, from 8.5% in May. The annual growth rate of borrowing by SMEs (small and medium-sized enterprises) increased from minus 0.2% to 0.3% – swinging into the first month of positive growth since August 2021, when there was a 1.3% increase.
Bloomberg
29-07-2025
- Business
- Bloomberg
UK Mortgage Approvals Rise as Market Stabilizes After Tax Hike
The number of UK home loans given the green light rose to a three-month high in June, as the housing market continued to shake off the impact of April's tax hike. Mortgage approvals climbed to 64,167, up from 63,288 in May and the most since March, Bank of England data showed on Tuesday. It was better than the 63,100 expected by economists surveyed by Bloomberg. Net mortgage lending, which reflects approvals granted in previous months, more than doubled to £5.3 billion.
Telegraph
01-07-2025
- Business
- Telegraph
House prices fall unexpectedly after Reeves's stamp duty tax raid
01 July 2025 7:49am 7:49AM Interest rate cuts will reignite house price growth, say economists Interest rate cuts will help house prices regain momentum next year, economists have said. Nationwide said the value of the average home fell for the third time in four months in June, while the annual rate of growth dropped to an 11-month low of 2.1pc. However, separate data from the Bank of England on Monday showed mortgage approvals increased by 2,400 to 63,000 in May. Paul Dales, chief UK economist at Capital Economics, said: 'The first rise in the number of mortgage approvals in five months in May points to the annual growth rate of house prices rising back to around 3.5pc. 'That might not happen in time to meet our existing forecast that prices will rise by 3.5pc in the year to the fourth quarter of 2025. 'But our new forecast that Bank Rate will fall from 4.25pc now to 3pc next year (our previous forecast was for a fall to 3.5pc) suggests that housing activity and prices will regain more momentum next year.' 7:35AM Good morning Thanks for joining me. House prices dropped unexpectedly in June after Rachel Reeves refused to extend the stamp duty holiday. Here is what you need to know. 5 things to start your day Trump triggers dollar's worst start to year since 1973 | US president's tariff onslaught sent US assets plunging amid worries over the future of the world's largest economy 'No intention of coming back': The expats choosing proximity to Iran over a life in Britain | Conflict in the Middle East hangs over the calm in tax-free Dubai – but for many life goes on Families' disposable income slumps in blow to Labour | Prime Minister's pledge to raise living standards on shaky ground as inflation and tax rises hit households Ben Marlow: British manufacturing could disappear for good under Labour | A lethal cocktail of neglect, complacency and short-termism is devastating UK industry Adam Smith: Starmer has shredded Reeves's credibility – how long can she last? | Changing her fiscal rules would be a resigning matter for the Chancellor What happened overnight Asian shares are mostly higher after US stocks added to their records with the close of a second straight winning month. Japan's Nikkei 225 fell 1.2pc to 40,003.24 despite positive results of the central bank's quarterly Tankan survey of large manufacturers, which showed an better than expected improvement in business sentiment. The Shanghai Composite index added 0.2pc to 3,451.69 after China's official manufacturing purchasing managers index, or PMI, rose to a three-month high of 49.7 in June while the PMI for services and other non-manufacturing businesses also rose to a three-month high of 50.5. Hong Kong's stock market was closed on Tuesday. South Korea's Kospi Composite Index surged 1.5pc to 3,117.17 after the government reported that exports bounced back in June, helped by strong demand for semiconductors, ships and health products. Australia's S&P/ASX 200 edged up 0.1pc to 8,550.80. The PSEi in Manila, Philippines, rose 0.2pc. On Wall Street, US stocks rose modestly with the S&P 500 and Nasdaq closing at record levels for a second session in a row, led by the tech sector. The Dow Jones Industrial Average rose 0.6pc, to 44,094.77, the S&P 500 rose 0.5pc, to 6,204.95, and the Nasdaq Composite rose 0.5pc, to 20,369.73. In the bond market, the yield on 10-year US Treasury notes fell to 4.228pc from 4.290pc late on Sunday.
