UK Mortgage Approvals Inch Up During February
The Bank of England has released figures indicating lending for fixed rate mortgages increased during the month of February. The number of mortgage approvals rose to almost 47,000, increasing 1.2% over the previous six-month average.
The rise in approvals amounted to an additional 1.2 billion pounds in financing. Remortgages also experienced an increase during the month of February. The final posted amount equaled 36,000. Neil Warman, HML chief commercial and finance officer, discussed the additional approvals which took place during the month, saying: "Perhaps it is the first sign that some confidence is returning to the housing market in advance of the usual spring bounce in house prices." Homeowners are taking a closer look at fixed rate mortgage loan products. It is estimated the Bank of England will be increasing its base rate soon from the historical low of 0.5%. Homeowners locking in a fixed rate will result in saving thousands of pounds over time for many people. Despite the increase in remortgages, monthly figures are still running well below the 100,000 approvals per month phase that were the norm before the financial crisis. Chief economist at IHS global insight, Howard Archer, commented on the marginal increase in approvals, saying: "Despite the modest pick up in mortgage approvals reported by the Bank of England in February, the market clearly is still very weak, which does not bode well for house prices." Some economists claim the increase in base rate from the Bank of England is just days away.