“Stricter lending criteria as a result of the implementation of MMR is likely to be a significant factor in the lower levels of mortgage approvals in October. A level of uncertainty has entered the market recently, with lenders reviewing their interest rate stress tests and the Bank of England delaying a rise in interest rates.
“As the prospect of a base rate rise is pushed further back, people are likely to feel less need to remortgage in the short-term, as evidenced by a fall in remortgaging of 21% compared to the same month last year.
“Despite a slowdown in demand, the overall mortgage stock continues to rise and gross mortgage borrowing in October was 2% higher than in the same month last year, indicating that while mortgage lending will continue to increase, we will see a more moderate rate of growth in the New Year.”
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Nicola York, Cicero Group
Phone: 020 7297 5965
Mobile: 07841 864 107
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