Figures for June show a notable increase in mortgage lending, with more people securing finance to purchase property and more approvals being granted for future transactions than in May.
Lending on the Up
Net borrowing of mortgage debt by individuals increased by £3.1bn to £5.3bn in June, compared with a £2.2bn rise in May. The annual growth rate for net mortgage lending rose from 2.6% to 2.8%, while gross lending climbed from £20.6bn to £23.9bn.
Net mortgage approvals for house purchases – a key indicator of future borrowing – edged up by 900 to 64,200 in June. Approvals for remortgaging with a new lender also increased by 200 to 41,800, the highest since October 2022.
Rates Continue to Ease
The effective interest rate on newly drawn mortgages decreased for the fourth consecutive month, falling to 4.34% from 4.47% in May. However, the rate on outstanding mortgage balances nudged up slightly to 3.88%.
Industry Optimism
Richard Donnell, Executive Director at Zoopla, noted that stable mortgage rates and changes to affordability rules have encouraged more buyers to commit to purchases. He reported unusually high summer activity, with sales agreed up 8% on last year and buyer demand up 11%.
Jason Tebb, President of OnTheMarket, added that the market “appears to be back on track,” with further base rate reductions, relaxed lending rules, and easing criteria helping affordability.
Nathan Emerson, CEO of Propertymark, welcomed the positive signs in the face of wider economic uncertainty, noting that recent reforms should encourage lenders to cater to lower-income buyers.
Winkworth’s View
With the Bank of England’s base rate softening and lenders showing willingness to pass on savings, the market is becoming increasingly favourable for proactive buyers. Lower rates can mean greater borrowing power, and as approvals rise, competition for well-priced homes is likely to intensify in the months ahead.
Now could be the perfect time to act – whether you’re buying your first home, moving up the ladder, downsizing, or refinancing.
Ready to take advantage of today’s improving mortgage conditions?
Speak to your local Winkworth office today for expert, personalised advice on securing the right
property and mortgage before rates or competition shift again.
