British banks approved the most mortgages since 2015 in December, it has been revealed.
There were 46,815 mortgages approved in December 2019, according to UK Finance — the trade body representing major high street banks across the UK. This hit the highest level of mortgage approvals since April 2015.
Moreover, the value of mortgage lending increased the most since March 2016, rising by a net £3.8bn, further indicating the housing market’s recovery following Brexit uncertainty in 2019.
However, the UK Finance data showed that banks and building societies lent a total of £265.8bn in 2019, down 1.1% compared to 2018.
Brexit Certainty Provides Mortgage Stability
Brexit uncertainty has been problematic for many within the homebuilding industry. Last year it was revealed that this uncertainty caused one third of home improvement plans to be cancelled, and In a Homebuilding & Renovating trade survey, over 40% of tradespeople said Brexit uncertainty was preventing their business from growing.
But the Conservatives’ General Election victory, and plans for Britain to exit the EU this week, have reportedly led to increased confidence in the housing market.
Prior to November, mortgage approvals had fallen back for three successive months, and in October they were at a seven-month low.
Despite the apparent recovery of the housing market, first-time buyers are still facing crippling house prices, with the average two-bedroom property now having a national asking price of £193,103.
Self build offers first-time buyers struggling to get on to the housing ladder the opportunity to create a home that meets their needs and requirements, and can help them save up to 30% on market value.
Specialist self build mortgages are available to those wanting to build their own home. Funds are released at specified stages of the project rather than in one lump sum upon completion.