Boost for buying power as mortgage approvals hit high
- 22nd September 2017
- Buying Property News
Outlook bright for first time buyers, with 88% now successfully securing mortgages
If you’re thinking of applying for a mortgage, you’ve got a good chance of success, new figures suggest - almost 9 out of 10 of all mortgage applications were successfully approved in the first half of this year - a record high.
This is great news for potential buyers – and particularly first-time buyers - who can use the current low interest rates to their advantage in securing a good mortgage deal. The number of successful first-time buyer applications has jumped 17% in the space of a year to an 88% approval rate.
The high proportion of successful mortgage applications highlights continuing confidence in the housing market. In London, the latest statistics show that August saw the fastest increase in job creation since April 2016. Additionally, in London residential mortgage loans have also hit a record high of £262 million in the last quarter of 2016, up 4% from £252 million at the same time the year before.
Stephen Ludlow, Chairman at ludlowthompson, says: “Mortgage lenders are opening up more opportunities for potential buyers to get onto the property ladder, or to upgrade to a bigger home.”
“It’s clear that lenders continue to see value in the market, and suggests that affordability is not being over-stretched.”
“For buyers who have been preparing to take that next step, this could be the moment they’ve been waiting for to turn their plans into action.”
“Many potential buyers, especially first-timers, will see now as a good time to look at getting a mortgage, before any potential interest rate rises. Further, many parents are supporting their children's purchases with 'Bank of Mum and Dad' lending increasing as parents look for a safe haven for savings that are currently deriving little return. Parents see investment in their children's future as the best strategy."
Mortgage lenders are opening up more opportunities for potential buyers to get onto the property ladder, or to upgrade to a bigger home
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