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Bank of England mortgage approvals for house purchases rise again in March

ended 30. April 2024

Net mortgage approvals for house purchases rose from 60,500 in February to 61,300 in March, the highest number of net approvals since September 2022, according to Bank of England data published this morning. Conversely, net approvals for remortgaging decreased from 37,700 to 34,200 over the same period. Newspage asked brokers for their views, which can be found below.

9 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
I'm slightly surprised by this data. For us, both March and April have seen the mortgage market stutter and lurch. Some weeks in March it felt like activity was starting to go through the gears but the next week it stalled. With the Bank of England consistently stating rates will be higher for longer, and lenders starting each week by increasing their rates, the market is not going anywhere fast just yet. The revs are building though, largely a result of pent-up demand, which perhaps explains the slight uptick in approvals. So when the handbrake is finally released, things could fly. We really need that first rate cut from the Bank of England, which has the potential to ignite the mortgage and property markets.
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Simon Bridgland
Director at Charwin Private Clients
Though remortgage and product transfer applications for both buy-to-let and main residential property were active in March and April, mortgage approvals for new purchases saw a definite contraction in our experience so this uptick is a bit of a surprise. The rate war excitement and expectations for a base rate cut at the start of the year have both been kicked into the long grass. The potential for any respite for those on variable rates has been pushed further away into the latter half of the year. On the flip side, borrowers I have been engaging with for later life mortgage business are not overly concerned with rates, as many have needs-based reasons for arranging products such as lifetime mortgages. Those looking with aspirational reasons, although fewer in number, have come to realise that the rates we are experiencing now are the norm and should not be considered high. The recalibration around mortgage pricing is almost now complete.
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Dariusz Karpowicz
Director at Albion Financial Advice
Mortgage activity remained robust in March and April, with a noticeable surge in enquiries and applications. Despite the uptick in mortgage rates, buyers are cautiously moving forward, perhaps spurred by the increased availability of property, which has created favourable conditions for negotiation. Looking ahead, the upcoming inflation data will be pivotal. If positive, it could halt the current trend of rate increases, though a reduction in rates seems unlikely at this juncture. This atmosphere is keeping buyers alert but determined as they navigate the evolving market landscape.
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Craig Fish
Director at Lodestone Mortgages
There was a noticeable increase in activity in March that continued into April, which suggests that there is an acceptance of the new higher interest rate environment, and a 'let's-just-get-on-with-it' attitude. The next set of inflation data is of paramount importance as is the long overdue first rate cut, which will undoubtedly spur the market on further.
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Justin Moy
Managing Director at EHF Mortgages
March, much like April, was a challenging time for the mortgage market after a strong start to the year. It definitely feels like homebuyers have become more cautious but the momentum from January and February may well have continued through into March based on this evidence. Many people aren't aware mortgage rates have increased but the 'little and often' price changes are being felt by new borrowers in particular. Though there has been a drop-off in actual applications, there's still reasonably strong demand for Decision in Principles and affordability checks. Keeping existing cases moving forward has been challenging, with delays at lenders, many of whom are demanding more and more documents and umpteen days of processing. The next inflation data will show improvements, but with the other distractions around the world I don't see us reducing rates to the level we expected a few months back, and this will just accelerate a slowdown in the economy throughout 2024.
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Lee Gathercole
Co-Founder at Rebus Financial Services
The property purchase market has certainly picked up in March & April we are seeing far more first time buyers and this is mostly like the ones that weren't able to bite the bullet in 2023, there is an element of optimsim at the moment whilst rates arent where they were in 2022 I think there is a expectation from most that these rates are hear to stay for a while.

The same can't be said for the buy to let market whilst mortgage critieria around rental stress rates has loosened this is still someway to allow investor to borrow what they need.

The next inflation figures are very important we need to another see a drop before any rate cuts are considered, but when they do drop the market will start to flourish.
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Austyn Johnson
Founder at Mortgages For Actors
How strong was mortgage activity for you in March and April? - Rammed :)

Following the fast start to 2024, has mortgage activity dropped as rates have risen? - No, we have just got busier, people are getting fed up of waiting!

Has optimism been replaced with caution among prospective buyers or are they simply getting on with it? - I think the initial shock has gone and people are just accepting that everything costs more now, if they want a house, they still want a house andno doubt, their rent has also rocketed recently.

Are any sectors of the market particularly strong or weak, from a demand perspective (landlords, FTBs, etc)? - We get a range of clients, but FTB is certainly on the move.

How important will the next set of inflation data be — and that first rate cut when it comes? - To the general public? Not important. To the people looking to remortgage soon? Very important. And to those looking to get on the ladder, they will be wondering whether they can wait another month.
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Gary Bush
Financial Adviser at MortgageShop.com
March mortgage numbers........
New mortgage requests in both March and April have been encouraging still as we move deeper into 2024 - with applications of all varieties coming to us to work our magic on.
We've seen a good level of first-time buyers, remortgages with further borrowing, same lender new rate negotiations, home movers, and shared ownership enquiries to keep us on our toes.
Has optimism been replaced with caution among prospective buyers or are they simply getting on with it?
How important will the next set of inflation data be — and that first rate cut when it comes?
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Graham Cox
Director at Bridging Hub
The drip-drip increase in mortgage rates since February has made borrowers more cautious. Activity has been steady rather than spectacular in March and April. The first base rate cut, whenever that comes, and hopefully sooner rather than later, should build confidence. Where it's most needed is amongst first-time buyers who generally have smaller deposits, and therefore pay higher mortgage rates.