Following the release of the latest Bank of England Money and Credit statistics, mortgage and property experts have their thoughts on the latest news and provide insight into what the figures could mean for the mortgage market and wider housing market.
Nathan Emerson, CEO of Propertymark, comments:
“This is a positive sign at a time when there is a poor economic outlook in general and potential tax rises on the way.
The Chancellor’s recent Leeds Reforms sent a positive signal to the mortgage market, which should encourage many lenders to focus new products and services towards those on lower incomes to help them take their first step onto the housing ladder.”
Colin Bell, COO and Co-Founder at Perenna commented:
“We’re encouraged by the uptick in mortgage loan approvals, which coupled with the seasonal decline in average asking prices in July, reduces one of the many barriers for getting on the property ladder in the UK. However, despite this and the number of homes up for sale reaching its highest level in a decade, home ownership remains out of reach for thousands of hopeful buyers due to mortgage affordability restrictions, stamp duty strategy, and a lack of more innovative and flexible products.
It is promising to see the FCA and PRA making progress on its Mortgage Rule Review, with the introduction of its interim policy, enabling lenders to disregard the LTI flow cap on a case by case basis, and consequently offering more mortgages over the 4.5x income threshold. While this will be a critical lifeline to first time buyers with stable incomes that are struggling to save a sizable deposit, it’s not exactly a game changer. Large swathes of the industry will remain unaffected, with traditional providers rarely lending enough to hit the 15% cap on high LTI mortgages anyway.
Nevertheless, this interim policy proves that the regulators are able to make changes and review some of the policies in line with the changing landscape since 2008. If we are to see sustainable growth in mortgage approvals, the FCA and PRA should continue exploring solutions to encourage the development of diverse and affordable mortgage products.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said: “It’s positive to see another monthly increase in mortgage approvals, even if it’s only marginal. While the summer period may slow things slightly, it’s encouraging to see some momentum building in the mortgage market, with prospective buyers and movers buoyed by ever-growing innovation among lenders and an increasing spotlight on improving affordability and access to new mortgages. Although the jury may still be out on its decision, all eyes will be on the MPC meeting next month and whether we see another cut to the base rate.
Remortgage activity now at its highest level since 2022 certainly reflects what our brokers are seeing on the ground. We knew 2025 would be a busy year for mortgage maturity, whether it’s those facing a rate shock from covid-era deals ending, or rate relief from deals chosen in the wake of the mini-budget. It’s a reminder to all brokers of the leg work required to get back in touch with clients and encourage them to explore their options in good time – especially in market that has seen so much change since those deals were first taken.
Following a drop last month, an uplift in consumer credit borrowing shows we’re not out of the wood just yet with increasing reliance on the likes of credit cards amid stubborn inflation and clear cost of living challenges. There’s no doubt brokers have to be alive to these challenges to best support clients. The great news is that brokers are best placed to help navigate all these components and use their knowledge and expertise to find the best deal. It’s up to us to stay proactive and remind potential borrowers of this at every opportunity.”
