Mortgage Approvals Dip In August 2016
Estimated Read Time: 3 minutes
Editor: Shaun Callacher
In August 2016 statistics from the Bank of England show Mortgage Approvals decreased compared to the previous year August 2015.
As you can see from the screenshot above the number of loan approvals for house purchase in the UK fell to just above 60 thousand in August 2016. This is a 17% decrease compared to just below 72 thousand in August 2015.
However what comes as a surprise is Mortgage Lending increased compared to the previous year August 2016, which gives a very large indication of the increase of property values in that time frame.
In simple terms - people borrowed more for higher property purchases but as a whole, less mortgage applications where approved.
What Does This Mean For House Prices?
It is hard to dictate which way the property market will go over the coming months. On one hand mortgage approvals (statistics only taken from the largest lenders in the market) may have dipped due to new coming peer-peer lending platforms rapidly increasing.
And on the other hand, the mortgage approvals may have dipped due to the largest lenders tightening their belts in fear of a future dip.
The truth is...
It is a very volatile market and the solution is to purchase for rental cash flow and hold for the long term. Any added capital appreciate within that time-frame is an added bonus!
To learn how to invest with no mortgage & small funds download my Ebook here: 'How To Start Your Property Portfolio With No Mortgage & Small Funds'
- Enjoyed the post? Please leave any feedback on the comment section below.
- Sign up to Prosper By Property newsletter to get more property tips.
- Get in touch to work together as JV partners firstname.lastname@example.org
- Would you benefit from 1v1 property mentoring? Join many of our previous students who have created financial freedom within a matter of months by working alongside us. For more information get in touch at: email@example.com