Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Net Mortgage Lending Surges in June
Net mortgage lending in the UK more than doubled from £3.3 billion in May to £7.7 billion in June, according to the latest data from the Bank of England. June’s lending figure was also significantly higher than the previous six-month average of £4.9 billion.
Mortgage approvals for house purchases increased to 58,200 in June, up from 56,600 in May. However, this number remained below the previous six-month average of 61,400, as reported in the Bank of England’s money and credit index. Approvals for remortgaging also rose slightly to 34,200 in June, compared to 33,800 in May. The remortgaging figures do not include product transfers where borrowers switch deals with their existing lender.
Interest Rates and Market Conditions
The average effective interest rate paid on new mortgages increased to 4.35% in June. The average interest rate on outstanding mortgages also rose, reaching 3.96%.
These changes in lending and approval activity are relevant for UK letting agents and inventory clerks, as shifts in mortgage lending and approvals can influence demand for rental properties and the pace of property transactions.
Source: Mortgage Strategy