In the latest mortgage approval data released by the Bank of England (BoE), it has been revealed that approvals have fallen between December and January.
According to the figures, the number of mortgage approvals in January of this year was recorded at 39,637, which is down from 73,789 approvals seen in January of last year.
Stuart Wilson, chairman at Air Club, said: “Today’s data certainly reflects the challenges of overcoming the difficult final quarter of 2022 for the mortgage market and the UK economy as a whole. Yet, despite the foreseeable dip in activity last month, it is worth highlighting that gross lending still remains higher than pre-pandemic levels, demonstrating the resiliency of the UK market.
“As we now head towards the Spring, the mortgage market is seeing a return to form with consumer confidence beginning to pick back up again. The later life lending market is also showing green shoots and we are seeing rates edging downwards as the number of products available move upwards.
“With people across the UK continuing to feel the pinch of the cost-of-living crisis, this is welcome news for those who need to look at how housing equity can support their retirement income or boost their ability to help their wider family with gifting.
“While taking the first steps onto the housing ladder at any time can be daunting, concerns about a correction have seen some adopt a ‘wait and see’ attitude but today’s figures will hopefully help to reassure them – and the bank of mum and dad – that now is the time to realise their dreams.”
Jonathan Samuels, CEO of Octane Capital, added: “The current level of mortgage market activity remains some way off the benchmark that we would expect to see at this time of year and it’s clear that many buyers remain deterred by higher mortgage rates, higher living costs and the wider economic landscape.
“However, as the year progresses and the herd mentality of the UK homebuyer kicks in, we expect to see a growing level of confidence return. While they certainly won’t be purchasing at the record house price highs seen during the pandemic, this will ensure the long term health of the housing market remains robust.”
