House purchase approvals shoot up in May

The number of approvals for remortgaging was up fractionally at 32,611 compared to 31,256 in April.The number of approvals for other purposes was 13,139 compared to the average of 13,602 over the previous six months.

But there has been a striking increase in approvals when compared with February this year when there were 27,800 remortgages and 52,306 approvals.

Mortgage Advice Bureau’s head of lending Brian Murphy says that with almost 6,000 more house purchase loans approved in May compared to February it demonstrates the surge in enthusiasm from buyers, brokers and lenders.

And he argues it’s not just prime borrowers that are benefitting, with borrowers who previously struggled to find a mortgage also having doors opened for them.

He says: “Adverse credit has really impacted consumers’ options since the credit crunch, but as conditions improve there are some options available even for those with a less than perfect credit history or adverse circumstances.

”Although the rates offered to them will be higher than the norm, we’re currently basking in the glow of a historic low for average rates across two, three and five year fixed products.”