Mortgage Approvals Surge to Two-Year High Says Bank of England
According to the Bank of England’s latest figures, mortgage approvals in the UK hit a two-year high in August, with 54,300 loans approved for home purchases. This represents a significant increase from July’s 49,400, highlighting a 10% monthly rise and showing the housing market's resilience.
Key Takeaways for Edinburgh and East Lothian Buyers and Sellers
The recent spike in mortgage approvals suggests growing confidence in the housing market, buoyed by improving affordability as borrowing costs continue to stabilise.
Interestingly, this marks the highest level of approvals since September 2021, indicating that buyers are taking advantage of the current economic conditions to secure favorable deals. This upward trend is further supported by a slight drop in remortgaging approvals, which saw a decline from 39,300 in July to 39,000 in August, as more homeowners opt to stick with their current rates.
Impact On The Local Market
For buyers, this increase in mortgage approvals is encouraging. More available mortgage options mean better chances for securing a loan at competitive rates, particularly for first-time buyers or those looking to upgrade their property. Sellers can also benefit from a surge in buyer demand, with more potential buyers entering the market and ready to make offers.
Why Are Mortgage Approvals Rising?
Several factors are contributing to this rise in mortgage approvals. With the Bank of England holding interest rates steady and inflation slowly stabilising, buyers are regaining confidence in their ability to afford long-term loans. Lenders are also becoming more competitive, offering a wider range of products that appeal to both first-time buyers and those looking to remortgage.
Additionally, fixed-rate mortgage deals, though higher than pre-pandemic levels, are offering buyers certainty amidst fluctuating economic conditions and so many buyers are simply taking this opportunity to lock in their mortgage rates with a view to obtaining certainty as to monthly costs.
Final Thoughts
As mortgage approvals hit their highest levels in two years, Edinburgh and East Lothian's property markets are positioned for further growth in 2025. The recent statistics point to a positive outlook for buyers and sellers alike, with growing demand and competitive mortgage products driving market activity.
If you're considering buying or selling in Edinburgh, contact Simpson & Marwick today to learn more about how we can assist you in navigating the current market trends.
