Buyers Bank of England - 'Mortgages are down this summer'

The Bank of England has announced mortgage approvals were down in the third quarter of this year, which is the first drop in two years. The drop is thought to be due to a bottleneck caused by new affordability rules and regulations. However, lenders are confident mortgage approvals will soon pick up again, at least for the next 12 months.

The new regulations mean lenders are paying close attention to mortgage affordability on a case by case basis, making sure applicants who want to buy a house can afford their mortgage before it is approved. This change has caused some teething problems which are thought to be temporary until the new systems are embedded.

The amount of people missing mortgage payments has also dropped, according to most lenders.

Stewart Property Buyers Team