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Mortgage Approvals Increase as Brexit Impact Weakens

Official figures from the Bank of England have revealed that the number of mortgage approvals rose for the second successive month – the highest level since the Brexit vote.

Second Consecutive Month of Mortgage Approvals Increase

Official figures from the Bank of England have revealed that the number of mortgage approvals rose for the second successive month – the highest level since the Brexit vote.

October saw 67,518 mortgages approved across the UK, marking a further increase on the rise seen in September, where a total of 63,594 mortgages were given approval by lenders.


The number of approvals achieved outperformed industry projections, with a survey conducted by Reuters finding that market analysts believed that October was likely to produce just 65,000 approvals.


Whilst the market remains below the levels seen prior to the Brexit vote, where the number of mortgages obtained remained consistently above 70,000 per month, the second month of growth has been noted as a turning point in the post-Brexit impact.


Former Royal Institute of Chartered Surveyors (RICS) residential chairman, Jeremy Leaf, said: ‘These numbers are encouraging as they show considerable resilience in the market, demonstrating again that the short-term fears about Brexit were overestimated…’


However, he also warned that the level of mortgages obtained is likely to change, as an increasing number of lenders readjust their long-term mortgage offerings heading into the new year.


Last month both Nationwide announced changes to their 10-year fixed rates mortgages which would see rates increase, whilst West Bromwich decided to withdraw their 10-year mortgage option in its entirety.


The news of the increased mortgage approvals will likely be welcomed by the government, following the announcement of their new spending initiatives in the UK’s housing market in last month’s Autumn Statement.

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