According to the latest figures from the Bank of England, the number of people taking out mortgages is back on the rise.The number of approved mortgages reached 67,196 in June which was a surprise jump of 8% on the number for May. This is the first rise in mortgage lending since the downward trend that began in February.Part of the slowdown in mortgage lending was blamed on the Mortgage Market Review (MMR), which required lenders to ask borrowers much tougher questions about whether they could afford the repayments. Experts believed that the MMR criteria had caused a bottleneck in the market however, the latest figures have shown that the recent slow-down may now be over. Richard Sexton, director of esurv chartered surveyors said “The temporary log-jam in the mortgage market is beginning to clear, and lending has returned to healthy sustainable volumes.”
The figures come as a surprise as earlier this week the Royal Institution of Chartered Surveyors (RICS) reported a slow-down in house price rises.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with residential property solicitors in Reading and across the country.