Residential Mortgage Approvals Drop In June
According to data available from the Bank of England, there has been a drop seen in the number of residential mortgages that were approved in June of this year here in the UK. Although this is disappointing news it is perhaps not a surprise.
In June 2016, the number of mortgages that were approved on residential properties amounted to 64,766 for the month. The previous month there were 66,722 residential mortgages approved. It had been forecast that in the region of 65,650 mortgages could be approved in June.
It was also disappointing to hear that the level of mortgages approved in June was the lowest that there has been in a month since back in May 2015.
One of the reasons why the number of mortgages approved dropped in June may be due, in part, to the results of the Brexit vote. That vote has resulted in the decision being taken that the UK will cease to be a member of the European Union. This may well have created some uncertainty among some people who were considering moving home and looking to buy another property and needed a mortgage as well as some first time buyers who were also going to be needing mortgage finance.
Of course, we have since had a drop in the base rate so it will be interesting to see if that encourages more people to apply for residential mortgages on the basis that some lenders may reduce their interest rates and thus make such mortgages cheaper due to lower repayment levels.
Whether it is a mortgage on a new home or a commercial mortgage to buy new business premises, it is important that the customer does everything that they can to obtain a competitive borrowing package taking into account a variety of factors including the interest rate, the level of fees and any security requirements. In order to do so, it may be worth shopping around which can be done in a variety of ways including using the services of a broker.