Photo by Mortgage Approvals on the Rise: A Glimmer of Hope for the Housing Market?
The UK housing market has been experiencing a tumultuous period, with mortgage approvals and housing sales experiencing a decline in recent months. However, according to recent data from the Bank of England, there is a glimmer of hope on the horizon. Mortgage approvals for house purchases have increased for the first time in six months, with 43,500 mortgages approved in February, up from 39,600 in January.
This increase in mortgage approvals is a welcome respite for the housing market, which has been struggling to recover from the impact of the COVID-19 pandemic. The rise in approvals is attributed to the slight decrease in mortgage rates, making it more affordable for people to purchase homes.
However, despite this positive news, there are still concerns about the state of the housing market. The cost of living crisis and high mortgage rates are putting many homeowners at risk of losing their homes. According to a charity, the number of mortgage possession claims has increased, with 23 claims made in Oxford in the year to March, resulting in three properties being repossessed.
The situation is not limited to Oxford, with a 28% increase in mortgage possession claims across England and Wales in the first quarter of 2024. This is a worrying trend, and it is essential that homeowners who are struggling to make their mortgage payments seek help and advice as soon as possible.
In addition to the concerns about mortgage possession claims, there are also worries about the impact of high mortgage rates on the housing market. The effective interest rate on newly drawn mortgages increased to 4.24% in February, making it more expensive for people to borrow money to purchase homes.
Despite these challenges, there are still opportunities for homeowners to take advantage of the current market conditions. With mortgage rates decreasing slightly, it may be a good time for people to consider remortgaging or taking out a new mortgage.
In conclusion, while the increase in mortgage approvals is a positive sign for the housing market, there are still concerns about the impact of high mortgage rates and the cost of living crisis on homeowners. It is essential for homeowners to be aware of the risks and to seek help and advice if they are struggling to make their mortgage payments.
