The number of mortgages approved in September fell to a four-month low, sparking a discussion into whether a lack of homes is to blame.
The figures, released by the British Bankers’ Association (BBA), saw the total number of mortgage approvals for house purchases drop to 44,489 –the lowest figure since May of this year.
Up on last year
However, when compared with the same month last year, gross mortgage lending was up by 17% to £12.1 billion.
In total, the number of mortgages approved in September this year was up by nearly a quarter (24%) on the same month last year. Of this figure, remortgages jumped by 40% year on year whilst mortgages for house purchase increased by a more modest 14%.
Howard Archer, chief UK and European economist at HIS Global Insight said to the Guardian that the higher levels of mortgage approvals in the four months prior to the September fall could be due to a larger number of buyers hoping to lock into low-interest rate deals before interest rates start to rise. He also suggests that a lack of homes on the market could be to blame for the dip in September.
Improve your chances of being accepted
If you’re planning on applying for a mortgage soon, it pays to plan ahead to maximise your chances of being accepted for a mortgage.
A good place to start is by looking at your credit history. If you haven’t checked it recently – or if you haven’t checked it at all – now is the perfect time to do so. Your credit history arguably has the biggest influence on whether you’ll be accepted for a mortgage, so it pays to keep on top of it. You can do so by using the free services Noddle or ClearScore.
Some other things you could do to boost your chances include:
- Signing up to the electoral register
- Rein in your spending
- Pay off as much debt as you can
Disclaimer: All information and links are correct at the time of publishing.