Mortgage Approvals Surge as Buyers Respond to 'Relative Economic Stability'

Mortgage approvals in the UK have shown signs of improvement, according to the latest figures from the Bank of England. Net mortgage approvals for house purchases rose to 58,200 in June, up from 56,600 in May.

The Bank's Money and Credit report also revealed that approvals for remortgaging with a different lender increased to 34,200 from 33,800 in May. Mortgage borrowers took out £7.7 billion in net mortgage lending in June, more than double the £3.3 billion borrowed in May.

The effective rate on newly drawn mortgages rose to 4.35% in June from 4.22% in May, while the rate on the outstanding stock of mortgages increased to 3.96% from 3.92%. The Bank's data was echoed by industry experts, who pointed to a period of relative economic stability as a factor contributing to rising mortgage approvals.

However, not all are optimistic about the prospects for the housing market. Nathan Emerson, chief executive of Propertymark, warned that affordability pressures remain and that ongoing uncertainty in the Middle East could affect global energy markets and inflationary pressures.