Mortgage approvals rise after new rules
Published 24/07/2014 | 09:13
Mortgage approvals rose for the first time in five months in June as stricter rules around home loan applications started to bed in.
Some 68,121 mortgages worth £10bn got the green light in the UK last month, marking a 4% month-on-month rise in approvals and the first monthly upswing seen since January, British Bankers' Association figures showed. Within the latest total, some 43,265 approvals with a total value of £6.9bn were for home buyers, up 14% on June 2013.
At the end of April, toughened mortgage lending rules came into force under the Mortgage Market Review which forced lenders to spend more time sifting through evidence to back up what mortgage applicants said about their spending habits, in order to make sure they could afford their loan repayments, both now and as and when interest rates rise.
In practice, lenders had been gearing up for the changes for weeks before their introduction.
The BBA report said that implementation of the MMR "might have slowed down (the) processing of applications in the earlier part of the year".