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Bank of England mortgage approvals December 2023

ended 30. January 2024

At 09:30 this morning, the Bank of England published its December Money & Credit report, which showed net mortgage approvals for house purchases rose from 49,300 in November to 50,500 in December. Net approvals for remortgaging increased from 25,700 in November to 30,800 in December.

13 responses from the Newspage community

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Jake Stott
Founder at Knox Mortgages
December was pretty tame on our end. Just the odd call here and there. People were more interested in their turkeys than their tracker rates. But come January, it's like someone's flipped a switch. We're swamped. People are keen to get a slice of the property pie, and who can blame them? With mortgage rates being snipped, it's all go. Loads of first-timers are looking to plant roots. It's not just the usual 'new year, new me' lot. Instead, there's a genuine shift. If this pace keeps up, we're in for a mad February, too.
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Akhil Mair
Director at Our Mortgage Broker
The surge in mortgage enquiries and subsequent applications since early December has been truly remarkable. There's been a dynamic blend of first-time buyers eagerly stepping onto the ladder and seasoned home movers seeking new horizons. We've also seen lots of astute investors strategically acquiring property using bridging loans. December was bustling with activity, as lenders slashed rates and sentiment among buyers rose sharply. January has carried forward this momentum, with demand for property showing promising signs of acceleration as lenders raced out of the blocks. 2024 has got off to a flying start.
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Rowan Frayling
Managing Director at J Finance
We had a relatively quiet December but January has been off the charts. Lenders came out of the blocks early with rate cuts and that quickly translated into activity on the ground. Many first-time buyers and movers have clearly decided that after a dire 2023, 2024 is the year to move.
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Malcolm Davidson
Director at UK Moneyman
We help a lot of first-time buyers and I would say the market in the North is running much hotter than is being reported. One client in Hull listed her home for sale last week, a typical first home, ex-Local Authority, and it had 17 viewings booked immediately. Four out of the first 5 all offered the asking price or close to it and it went to best and final bids. She cancelled the other 12 viewings. I'm sure there are regional variations, and properties of higher value do seem to be sticking, but I am starting to wonder already whether the economists' predictions of a flatlining 2024 might be a bit off.
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Michelle Lawson
Director at Lawson Financial
December for us was busy due to the swathes of rate cuts for existing applications in processing. The second half of January has seen a definite influx of new business. A lot of people who have been mulling things over have decided to act. These actions are the sort of ignition switch the industry and economy needs.
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Craig Fish
Director at Lodestone Mortgages
We had a record number of mortgage enquiries in December, and that continued into January. It seems that first-time buyers have come out of hibernation, and those looking to potentially upsize are making those tentative first moves. All in all it looks like 2024 could be a positive year, providing that the overall economic climate continues to improve. Many people are eagerly awaiting the first rate cut from the Bank of England and, when it comes, that should open the floodgates.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Month on month figures for December will likely show an increase in activity, but this masks the truth. Year on year, volumes and values will be significantly down. There is worse to come, as more people fall off the security of their fixed rates in 2024 that were near 1% and now near 5%. The economy is bumbling along like tumbleweed in the desert and the business community have no certainty over when there will be a general election and some hope of fresh ideas. Until then, things will remain in the doldrums.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
December was a reasonable month, in what is historically a poorer performing period. Enquiries continued to come in right up until Christmas closure, which is unusual, but highlights the growing appetite among prospective buyers and homemovers. In January, things accelerated even further, with remortgage leading the way. Importantly, though, home buyer and home mover activity is also picking up. It looks like the property market is getting its mojo back.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
December 2023 was no ordinary December. Usually demand for mortgages dips early in the month as the festivities begin but last month it was hectic right up until Christmas Eve. January has been just as busy, with lots of movement in the purchase market. I’ve seen an increase in both first-time buyers and home movers upsizing. The home movers are saying they wanted to move last year but it just wasn’t feasible with the higher mortgage rates. Remortgages are also taking over from product transfers as lenders are still fighting for new business, which is reflected in this data. Hopefully this continues throughout 2024 as lenders make up for an underwhelming 2023.
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Justin Moy
Managing Director at EHF Mortgages
Before Christmas, there was a notable increase in activity, with plenty of home buyers looking to establish their borrowing budget, assess their monthly costs and the options available. January has definitely seen that trend continue, with buyers now finding property that is more affordable. With mortgage rates falling, borrowers are being quick to snaffle a much better deal. Typically borrowers are taking terms of 30+ years to make payments easier to stomach, knowing they can overpay and adjust this at a later date. Most are taking shorter two or three-year deals hoping that costs will reduce over time. There is a renewed positivity in the market, it would be a shame if this balloon was popped before the spring.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
December, despite being a shortened working month due to seasonal festivities, was busier than expected for purchasing enquiries. Things then went supersonic in January as falling fixed rates boosted buyer confidence. The fall in the ‘effective’ interest rate on newly drawn mortgages, the first drop since November 2021, reflects the competition in the market.
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Ying Tan
CEO at Habito
December was steady and typical for that time of the year for Habito. January, however, has exploded into life as lenders have cut rates and jostled for position. Enquires are double what we had in December, and these are moving quickly to applications. First-time buyer activity is up, whilst existing homeowners are looking to lock in lower rates. We have also seen an increase in those wanting fixed rates, up to 92% of our business from 88% at the end of last year. 2024 has had an encouraging start for the market, however we look ahead with caution.
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Ross McMillan
Owner/Mortgage Advisor at Blue Fish Mortgage Solutions
December was as expected with purchase activity in hibernation but remortgage activity steady. January, however, has started 2024 with a bang with mortgage enquiries significantly up on previous years as buyers return with gusto. First-time buyers remain at the heart of the market and continue to pump life into the sub-£200k market in Scotland. Alongside this, 2024 has also seen a notable uptick in those further up the ladder establishing their mortgage options as they creep out from the undergrowth and consider taking delicate steps up but also down the property ladder in the months ahead. All in all a very encouraging start to the year and, unless unexpected inflation data or world events intervene, it seems like 2024 could be a strong and postive one for the UK mortgage and property market.