Mortgage approvals continue to struggle within the UK housing market, according to the latest figures released by the Bank of England.  January saw almost 4,000 fewer approvals compared with the month prior which totaled 97,958.  House approvals slipped almost 2% month on month receding from 55,632 to 54,719 in the month of January.  Remortgages also took a step in reverse, as the month of December saw more than 27,700.  In comparison, January totaled only 25,573. 

Peter Williams, Intermediary Mortgage Lenders Association executive director, commented on the current state of demand and what can possibly be expected for the short term.  He said: “A drop in numbers is to be expected around the turn of the year, but the fact that the number of loan approvals for house purchase remained above the six month average suggests that overall conditions are continuing to improve.”

Williams continued: “Brokers can certainly expect to see further rate cuts and product launches driving recovery and growth in the market. It will be interesting to see whether this month’s Budget brings any further initiatives to expand the Funding for Lending scheme, promote higher loan-to-value lending and address the continuing undersupply of housing.”

Analysts within the housing market feel the spring shopping season should benefit the housing market overall.  This year compared with last year should bring more productive activity due to the lack of distractions which will be taking place.  Remortgages should see a corresponding move northward as more house owners discover the potential benefits of the lesser known financial mortgage product.