Big drop in mortgage approvals

Approve mortgages in March lowest level since December

The number of mortgages approved in March saw a significant drop due to a buy-to-let investors pulling out of the market as a result of the 3% increase in stamp duty on investment properties plus the start of the removal for the ability for landlords to claim tax relief for mortgage interest costs against income.

The number of mortgages approved by British banks in March fell to its lowest number since December. The British Bankers Association which excludes loans from Building Societies saw the number of loans drop to 45,096 in March from 45,646 in February. Remortgages fell to 24,833 from 25,034.

Total mortgage approvals fell to 78,448 for March from 79,159 in February.

The industry is now waiting for the April figures which may see further drops.

Written by: Houseladder