The British Bankers’ Association is seeing a rise in personal savings and more planning for the purchase of a home in the future since the Mortgage Market Review has given house hunters a way to check the ability for them to afford a house.  The first data is now being released since the inception of the review and the numbers within the data are quite telling.  The data is suggesting the heat has been taken out of the mortgage market.

The period known as the spring bounce is proving once again as the time for house sales to increase.  More than 5,000 additional houses were sold in the month of May compared with the month of April, according to data from the HM Revenue and Customs.  This figure could increase in the coming months with the summer upon us, but with the review in place, not likely.

Richard Woolhouse, chief economist with the BBA, commented on the data concerning mortgage approvals since the Mortgage Market Review went into effect, saying: "These are the first mortgage approval figures we have seen since the introduction of the Mortgage Market Review, so it is significant they have fallen for the fourth month in a row.”

Woolhouse added: "This is being driven by a drop in remortgaging and people borrowing against the value of their homes."

The Bank of England could introduce measures to further cool the housing market from its current state.  The potential for a housing bubble is still present although fundamental indicators within the economy are not pointing in that direction any longer.