Record high for successful mortgage applications in the UK

Successful mortgage applications in the UK reached a record high in the second quarter of 2017 with almost nine out of 10 done through intermediaries being granted.

Overall some 88% of home buying applications led to offers, up 13% year on year, according to the figures from the Intermediary Mortgage Lenders Association (IMLA).

In spite of political uncertainty, the success rate is the highest on record since the IMLA’s mortgage tracker started at the beginning of 2016 and comes at a time when gross mortgage lending reaches £60.3 billion in the quarter.

The quarterly survey report also found that 96% of intermediaries in the mortgage market feel optimistic about its future and suggests that the current record trend is likely to continue.

It also reveals an improving picture for first time buyers, saying that they have taken advantage of an extended period of low interest rates and lender support, which despite affordability pressures meant that the number of mortgage applications by this group resulting in offers increasing by 17% year on year to 88% in the second quarter.

‘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 home owners off their course,’ said Peter Williams, executive director of the IMLA.

‘The percentage of successful applications continued to grow across the board, a testament to the ability of the intermediaries to match consumers with suitable products in what is an increasingly complex marketplace,’ he pointed out.

‘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,’ he explained.

‘ 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,’ he added.

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Written by: Houseladder