Mortgage approvals increased in December.

Bank mortgage approvals show the highest level since 2015.

Mortgage approvals, mortgage applications approved by high street banks, reached its highest level for 5 years.

Experts have said this could be a sign or a revival in the housing market.

However, Samuel Tombs, the chief UK economist at the consultancy Pantheon Macroeconomics struck a cautious note when he said any post-election bounce would be shown in the January data, as it took about two weeks for buyers to receive a mortgage offer.

He said the jump in December probably reflected falling borrowing costs for households in the second half of 2019.

Gabriella Dickens, an assistant economist at consultancy Capital Economics, said:

“So instead of reflecting a broader expansion in credit, much of the annual rise recorded by UK Finance reflects these lenders competing for market share.”

The rise in mortgage approvals comes amid intense competition among high street banks to sell home loans.

The Bank of England has recently discussed cutting interest rates after the UK economy flatlined at the end of last year.  Intense political uncertainty over Brexit and the snap general election have both been factors in making a decision.

The Bank could be more likely to leave interest rates on hold if there was a property upturn.

Mortgage approval figures.

Mortgage approvals for house purchases saw an increase to 46,815 in December. This compared with 44,058 a month earlier, according to UK Finance.

UK Finance, The trade body that represents major high street banks across the country said the value of mortgage lending increased the most since March 2016, rising by a net £3.8bn.

The Bank of England will get a new governor in March, Andrew Bailey, who is currently head of the Financial Conduct Authority (FCA).  This Thursday’s meeting of the Monetary Policy Committee will be the current governor, Mark Carney’s last.

City economists believe a decision between holding borrowing costs steady and cutting the key rate from the current level of 0.75% rests on a knife-edge

What will the Bank do?

The Bank could decide to leave rates on hold. There has been speculation that the Bank may cut rates once again. However, retail sales unexpectedly plunged in December. 

 Inflation dropping could also be a reflection of weakness in the economy at the end of last year.

The rise in mortgage borrowing, a jump in employment levels and increasing business confidence since Boris Johnson’s election victory could still encourage the Bank to leave rates on hold.

Howard Archer, the chief economic adviser to the EY Item Club said it was likely that mortgage approvals were lifted by increased confidence since the election.

“Prior to November, mortgage approvals for house purchases had fallen back for three successive months to be at a seven-month low in October, indicating that activity was being pressurised by heightened uncertainties over the domestic political situation and Brexit,” he said.

Brexit trade talks could still have an impact.

Despite the upturn in mortgage approvals, the outlook for the housing market will also depend on the next phase of the Brexit talks with Brussels, as the government attempts to strike a trade deal with the EU before the end of 2020.

Andrew Montlake, the managing director of the mortgage broker Coreco, said:

“It goes without saying that a huge amount is riding on the outcome of the trade negotiations and so there is still the potential for significant volatility.”

If you are struggling with debt problems, Ramsey Lomax can help. contact Ramsey Lomax.

Ramsey Lomax.

“over 12 years of dedicated advice.”

“People struggling with debt should seek help as early as possible.”

This is good advice from a leading charity.  Taking the first step is always difficult but it is vital.  There is help out there and solutions that can help, but you need to take the first step towards getting good debt advice.  We have listened to the stories of 1000s of people and are constantly striving to help them.  It is our mission to explore all their options and find a solution to help them become debt free. And what’s more, we have helped 1000s to achieve their goals since 2007, over 12 years of dedicated advice.

Find out how Ramsey Lomax can help you and if you qualify to write off up to 80% of your debts.

RAMSEY LOMAX – helping 1000s of people since 2007

Getting help with debt problems is ‘vital.’

Finding a good debt advisor is often a relief.  At Ramsey Lomax, we have years of experience in helping people.  One thing to remember is that your chat with our advisors is completely confidential, free and without obligation. For many of our clients just getting it off their chests and having a sympathetic ear to talk to can make all the difference. At Ramsey Lomax, we understand ‘financial fear’.  We have helped 1000’s of people to find a lasting solution to their debt.

Ramsey Lomax – fully authorised and regulated by the FCA, the Financial Conduct Authority. We also have a 5 star Trustpilot rating.

Taking that first step is not always easy but is a crucial step towards helping you to find financial freedom.

Who we are – RAMSEY LOMAX

Contact Ramsey Lomax here.

• See if you qualify for an Individual Voluntary Arrangement. An IVA is a government-backed solution that could write of up to 80% of your debts.  Please read below for more information about other solutions that may be available to you.