House mortgage market stays subdued
The UK mortgage market remains subdued despite a slight recovery in April, the major banks say.
The British Bankers’ Association (BBA) figures show 38,704 new mortgages were approved for house purchases in the UK in April, up from 35,546 in March.
But this is still down 39.4% compared with the same time a year ago.
The figures show a sharp rise in the number of people remortgaging, highlighting a trend of homeowners switching lenders for a better deal.
Still moving
“It is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt,” said the BBA’s statistics director David Dooks.
The mainstream mortgage market has not ground to a halt
David Dooks, BBA
The figures only cover the major banks, who have been able to ride the credit squeeze and have continued to offer a wider range of mortgage deals than smaller lenders.
The smaller banks and building societies have been putting deals on hold or withdrawn offers as lending between financial institutions remains tight.
The rise in remortgaging levels - up from 60,410 in March to 74,722 in April - could also be the effect of Northern Rock customers being encouraged to switch lenders for more competitive deals.