UK Mortgage Market Shows Resilience in First Quarter
The UK mortgage market has demonstrated resilience in the first quarter of 2023, with a notable increase in demand and approvals, according to data released by the Bank of England. This growth comes as the housing sector continues its recovery from the impacts of the pandemic, supported by favorable interest rates and government initiatives.
Increase in Mortgage Applications
Mortgage applications in the UK saw a 2.3% uptick in the first quarter compared to the previous quarter. This rise in demand signals a positive trend in the market, reflecting growing consumer confidence in the housing sector’s stability.
Surge in Mortgage Approvals
Notably, the number of approvals for new mortgages surged by 3.1% during the quarter, reaching the highest level since 2007. The increase was primarily driven by a significant rise in approvals for house purchases, which saw a notable uptick of 4.3%.
Extension of Help to Buy Scheme
In response to the growing demand for housing support, the UK government has announced plans to extend the Help to Buy scheme until 2026. This scheme, aimed at assisting first-time buyers with property purchases through loans, has been instrumental in facilitating home ownership for many individuals.
Consumer Credit Growth and Inflation Concerns
The Bank of England’s report also highlighted the robust growth in consumer credit, which increased by 6.1% in the first quarter compared to the same period last year. However, the central bank cautioned about the impact of inflation, which stood at 3.5% in March. Rising inflation rates could potentially strain household budgets and lead to a slowdown in borrowing growth.
For more information, you can visit the Bank of England, FT, and Help to Buy websites for detailed insights and updates.
Stay tuned to MortgageWatch for the latest developments in the UK mortgage market.