September, 2017
There has been a new record high in successful mortgage applications in the UK, with just under 90% of applications done through intermediaries being granted.
According to recent figures from the Intermediary Mortgage Lenders Association (IMLA), there was a 13% percent rise year on year of applications that led to offers, with 88% of offers in Q2 of 2017 being granted.
The new data from the IMLA’s mortgage tracker also showed that the 88% recorded last quarter was the highest success rate seen since their records began at the start of last year and took the gross mortgage lending past the £60 billion mark in the same quarter.
In addition to this, a quarterly survey carried out by the IMLA found that 96% of mortgage intermediaries felt optimistic about the market's future with many that believe the numbers should continue to rise throughout the year.
There have been many questions and concerns recently about the affordability of purchasing a home, especially in regards to first-time buyers, however, recent statistics show signs of a positive market for this demographic with a 17% increase last quarter. These figures suggest that low-interest rates and lender support have resulted in a considerable increase in the number of buyers taking their first step onto the property ladder.
Executive Director of the IMLA, Peter Williams, spoke on the recent results, suggesting that the market is strong enough to remain stable throughout recent and ongoing political and economic uncertainty.
He said, “While the second quarter of 2017 was dominated by political speculation and campaigning, any resulting uncertainty was not enough to send the mortgage market and the determination of aspiring homeowners off their course”.
Williams went on to say that “With house price rises softening and easing affordability pressures, borrower demand and lender supply remains unwavering, heightened by increasingly competitive residential and buy to let LTV pricing.
“Greater choice means that, for intermediaries, it is perfectly possible to match a wide range of aspiring homeowners and movers to suitable finance without compromising on rigorous assessments of borrower capacity to service their mortgage underpinning the market”.
