skip to main content
Find Insight DIY on
* * *

UK DIY News

Mortgage Approvals Fell in September

House keys 725 x 500

According to the trade body, UK Finance, the number of mortgage approvals recorded in September fell on an annual basis.  

Gross lending across the residential market was at £21.5bn, a 1.2% reduction compared with last September, while the main high street bank lenders saw mortgage approvals fall 9.1%.

House purchase approvals were also down 10.1%.

Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance, said:

“The mortgage market softened slightly in September, following strong remortgaging activity in the months preceding the recent base rate rise.

“There has been modest year-on-year growth in card spending. However, borrowing through personal loans and overdrafts has contracted slightly in recent months, suggesting demand for unsecured household finance is becoming more subdued.

“Consumers are increasingly choosing to keep cash close to hand, with deposits held in instant access accounts showing steady growth.”

Andy Soloman, Business Growth Expert at Yomdel, commented:

“While mortgage approvals don’t necessarily paint a full picture of market conditions, they do provide a snap shot the current property landscape and more importantly, the current level UK homebuyer sentiment.

A reduction was always on the cards given that previous approval levels were heightened ahead of the increase in rates in August. So the market has seen more of a natural adjustment rather than a drastic reduction in buyer activity, although it’s still not firing on all cylinders when compared to previous years.

There is certainly still an appetite for homeownership in the UK, albeit a more selective one at present. While the property market is likely to take a back seat in the next Budget, we could see market activity continue to cool ahead of the announcement at the end of this month.”

Source : Insight DIY Team, UK Finance and Yomdel 

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.

26 October 2018

Related News

view more UK DIY News
*

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

*
Paul Boyce - European CEO, QEP Ltd.
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry