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Bank of England mortgage approvals April 2023

ended 01. June 2023

Tomorrow morning at 09:30, the Bank of England is publishing the mortgage approvals data for April. Few Qs ahead of this.

  • Mortgage approvals jumped sharply in March relative to February, the BoE said last month. Do you expect them to increase again in April (based on your activity levels during April and May)?
  • After the lender/rate/product volatility of the past week, do you expect mortgage approvals to fall in June as people once again adopt a wait-and-see approach much like they did after the mini-Budget?
  • Many of you have said that borrowers have readjusted to the new norm for rates and that activity picked up noticeably during the spring. Has that readjustment just been blown to smithereens?

Any other thoughts, insights or anecdotes, send them across.

5 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Data from the central bank will show little change from the previous month, but looking at the mortgage market more recently this won’t be for long. Activity in the housing market is set to dry up again, as confidence goes from boom to bust in the sector.
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Editor
Craig Fish
Director at Lodestone Mortgages
We seem to be experiencing comparable levels of activity month on month at present, and therefore I would suspect that the BOE data will show transaction levels to be similar to previous months and broadly in line with what is expected at this time of year. That said the recent market turmoil, sticky inflation, and increasing swap rates have made lenders nervous, so with the expectation of BOE increasing rates further still, I suspect we haven't seen the back of the mortgage rate increases just yet. This will no doubt lead to a slowdown in buyer activity, but many people still need to remortgage, so overall activity is likely to be slightly lower in coming months.
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Riz Malik
Independent Financial Adviser at R3 Wealth
The ailing UK mortgage market has cast a shadow over the housing sector, with mounting concern. The Bank of England's reluctance to administer the needed remedies has left many frustrated. Unless there is stability in interest rates to provide a respite, the challenges of 2023 are expected to persist.
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Aaron Strutt
Product and Communications Director at Trinity Financial
Many of the first-time buyers we are talking to are keen to get on the property ladder, and they understand that rates are likely to be between four and 5.5 per cent. The homeowners who have enjoyed the ultra-low mortgage rates find the more expensive deals harder to accept.
Our brokers are busy at the moment dealing with lots of remortgages and an increasing number of purchase transactions. The issue is that every time the Bank of England hikes the base rate, more confidence is sapped from the mortgage and property markets. We need a period of financial stability and at the moment it seems quite a way off.
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Ross McMillan
Owner/Mortgage Advisor at Blue Fish Mortgage Solutions
Following a solid recovery in new mortgage activity, April appeared to pave the way for a steady and promising Spring/Summer housing market. However, May took an unexpected turn, catching many off guard and casting doubt on the market's outlook. The immediate impact of lenders' response to this recent shock on borrowers' confidence remains uncertain.
The housing market in Scotland, remains resilient, with first-time buyers displaying a strong appetite for homeownership and no significant decline in property prices.
Unfortunately, renewed turmoil surrounding interest rates and product availability has dealt a severe blow to the buy-to-let sector. Hope was beginning to emerge but now this segment faces prolonged uncertainty as lenders and investors carefully consider their next moves.
As news of the interest rate turmoil spreads, enquiries for mortgage refinancing have already surged and so it is crucial that considered advice is given and knee-jerk costly reactions avoided.