UK mortgage approvals hit 19-month low

We all dream of owning our own home one day and for anyone who had one of the 60,912 mortgages approved in July 2016, that dream became a reality. But even though that sounds like a lot of approved mortgages – it’s actually down from 64,152 in June 2016 (and it’s also the lowest number of mortgages approved since January 2015). So what’s going on and what does it all mean?

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What’s happening?

It’s not that fewer mortgages are being approved, it seems that fewer people are taking one out, potentially due to everything that’s gone on with the old Brexit vote and all the uncertainty surrounding it. It seems that while we’re quite happy to spend our way through uncertainty with personal loans and overdraft borrowing still going strong, we’re less inclined to fork out for a big purchase – like a house. However, our research showed that people remained confident in the housing market following the Brexit vote and it seems there’s a bit of confusion in the market.

So what are the predictions for house buying in the not too distant future? Well, clever clogs analysts and economists think that house prices could slow down and perhaps decline by between 3% and 5% in the latter half of 2016 and into next year. But what does this all mean for anyone saving for a mortgage?

If house prices fall, then chances are, homes could be ever so slightly more affordable which obviously means your money may stretch further (a good thing).

What should I do next?

But that doesn’t mean you should put your home owning dreams on hold, just sit tight and weigh up all the options open to you – whether you’re a first time buyer or looking to take out a second mortgage.

And if your mortgage is up for review, then strike while the iron’s hot and think about remortgaging and use the current low interest rates to your advantage – remortgages are already up 45% on the year so isn’t it worth seeing what you could save too?

So if you’re looking for a mortgage, we’re here to help you get the right deal for you – so comparethemarket.com – it’s what we do.

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