According to the Bank Of England in April the number of house loan approvals hit a staggering high of 68076 loans – the highest monthly figure it has been for 14 months. The latter figure resulted in there being 6100 more loans in April that there was in March, thus a 9.9% increase, which is the largest monthly increase the UK property loans sector has seen for more than 6 years. Such figures run in parallel with the mortgage price war that has been occurring and has been pushing home loan rates to record low figures and not to forget the spring home-buying season that takes place annually. With HSBC offering a five-year fixed rate home loan with a 1.99% rate in April – the lowest rate that a deal of this type has ever been offered – and only days later a 1.09% two-year-fixed home loan rate being offered, we can only assume that in order for borrowers to be able to access these deals tougher lending tests will need to be in place as well as substantial deposits.
As described on the Guardian website, Howard Archer, the UK economist at consultancy IHS Global Insight, feels that the recent data “reinforces our belief that housing market activity is now on the up…following the decisive general election result”.
We shall have to see if the UK property market activity continues to flourish in the second half of 2015.
Have a great day