UK housing market mortgage approvals inched up slightly in the month of June.  This is in stark contrast to other months this year, especially months at the beginning of 2014 when the housing market was on fire and banks could lend with more freedom than they have now.  Lending banks are now operating under a new set of guidelines which prevents them from being as liberal as they have been in the years leading up to 2014.

Mortgage approvals increased slightly more than 3% compared with May and almost 15% year on year.  January, comparatively speaking was a model month for mortgage approvals as almost 49,000 were approved according to the British Bankers’ Association.

April proved to be a pivotal month for all mortgage lenders as the Mortgage Market Review kicked in making it more difficult for borrowers to obtain loans which may have been approved just weeks prior.  Before April, lending banks were on fire.  The number of mortgage approvals was increasing at a rate of almost 60% year on year.

Lucian Cook with Savills commented on the number of mortgage approvals currently taking place, saying: “There has been a moderate pick up in mortgage approval rates as the lenders get to grips with the implementation of the MMR. However, the falling growth rate in the number of home loans shows us that undoubtedly the tighter lending conditions have started to fundamentally suppress the mortgage market.”

Cook added: "In March, before the MMR, the number of mortgage approvals for house purchase was rising at 41pc year on year. This has fallen to 14pc in June due to regulatory constraints.”