THE number of mortgage approvals and the value of lending both declined for the first time in three months during June 2019, industry data shows.
Approvals and the value of mortgage lending had been steadily rising between March and May, and now there are predictions that the election of Boris Johnson as Prime Minister could see a rush of sales as buyers look to beat a no deal Brexit.
Lending figures from banking trade body UK Finance showed the number of mortgage approvals for home purchase fell 2.3 per cent on a monthly basis but was up 2.9 per cent annually to 48,539.
The value of mortgage lending dropped over the 12 months by four per cent to £21.9bn and fell 1.7 per cent between May and June.
“Considering the swell of political uncertainty over the past few months, it’s hardly a surprise to see a further slowdown in mortgage lending,” John Goodall, chief executive of peer-to-peer property lender Landbay, said.
“Would-be buyers will be forgiven for pressing pause on any decision without more clarity over the UK’s future direction.
“However, with Boris Johnson now in the hotseat, and promising Brexit by October, many may well consider making their property move between now and then to avoid any potential no-deal disruption.
“The truth is that we are in a buyers-market amid subdued house prices, decent wage growth and lenders with a genuine appetite to lend. Add to the mix low-interest rate conditions alongside stable inflation and it’s not hard to see why things could be looking up in the near term.”
Personal borrowing through loans in June 2019 was 2.4 per cent lower than the same month a year ago, UK Finance said.
Read more: Special report: Property investing