Mortgage approvals fall during October
By |Published On: 24th November 2016|

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Mortgage approvals fall during October

By |Published On: 24th November 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

The most recent statistics from BIBA show that there has been a 10% year-on-year fall in the number of house purchase approvals year-on-year to October 2016.

For remortgaging approvals, levels stayed constant to those in October 2015. There has however been more growth in the last ten months.

Mortgage borrowing

Gross mortgage borrowing levels for October 2016 stood at £12.2bn, 4% lower in October 2015. Net mortgage borrowing increased by 2.5%.

Matt Andrews, Managing Director of Bluestone Mortgages, noted: ‘An annual decrease in mortgage approvals reflects a more cautious approach from lenders, likely as a result of the current uncertainty in the housing market and wider economy. However, fewer-approvals and the continuing squeeze on affordability is pricing an increasing number of would-be homeowners out of the market.’[1]

‘The borrowers who are set to suffer the most under these conditions are those who do not fit traditional high-street lending criteria. Automated credit scoring models seldom take into account the nuances often found in the credit profiles of contractors, the self-employed, or those with adverse histories,’ Andrews continued.[1]

Mortgage approvals fall during October

Mortgage approvals fall during October

Concluding, Mr Andrews said: ‘Yet the UK workforce is changing-contractors have grown by 35% in the past three years alone. If more lenders were to offer a more personalised underwriting experience, working to understand the factors behind an individual’s circumstances, we would see an increasing number of hopeful buyers achieve their goal of homeownership.’[1]



About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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