Mortgage lending dropped to \u00a34.3 billion in August, the second monthly decline, indicating that the market has quietened throughout the year.<\/p>\n
Previously net lending stood at \u00a34.5 billion in July, and \u00a35.4 billion in June.<\/p>\n
Emma Cox, managing director of real estate at Shawbrook, said: \u201cFollowing an increase in July, August has had a surprise dip as concerns surrounding affordability stifle growth.<\/p>\n
\u201cAs the economic environment remains challenging and with minimal movement in house prices, buyers and professional landlords will be hoping that a more stable interest rate environment will lead to more favourable deals entering the market.<\/p>\n
\u201cDespite the slight dip in approvals, professional landlords will be reassured by a stable market and continued strong tenant demand which has given many investors the confidence to continue. This opens up further opportunities for landlords to capitalise, expand their portfolios, maximise yields and grow their businesses.\u201d<\/p>\n
\t <\/p>\n
Net mortgage approvals for house purchases also fell slightly by 500 in August, to 64,700.<\/p>\n
Peter Stimson, head of product at MPowered Mortgages, said: \u201cFalling interest rates are losing their ability to encourage more first-time buyers to take the leap to home ownership, but remortgaging activity is booming.<\/p>\n
\u201cEven though the number of mortgages approved in August fell across the board compared to July, much of this fall can be attributed to the summer slowdown.<\/p>\n
\u201cBut when you compare the figures with those of August 2024, it\u2019s clear that a two-speed market is emerging. The number of home purchase mortgages has slipped slightly, but the number of remortgage approvals has surged by 39%.<\/p>\n
\u201cRemortgagers are far more rate-sensitive than buyers \u2013 and it\u2019s likely that the six successive months of falling interest rates revealed by the Bank of England\u2019s data have led many existing homeowners to seize the opportunity to lock in a new rate.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage lending dropped to \u00a34.3 billion in August, the second monthly decline, indicating that the market has quietened throughout the year. Previously net lending stood at \u00a34.5 billion in July, and \u00a35.4 billion in June. Emma Cox, managing director of real estate at Shawbrook, said: \u201cFollowing an increase in July, August has had a surprise […]<\/p>\n","protected":false},"author":1,"featured_media":1614,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n