Remortgaging approvals were similar to those in October 2015 but in the first ten months of 2016 were 13% higher than in the equivalent period of 2015.
Gross mortgage borrowing of £12.2bn in the month was 4% lower than in October 2015, however net mortgage borrowing rose by 2.5%.
Matt Andrews, Managing Director at Bluestone Mortgages, commented: “An annual decrease in mortgage approvals reflects a more cautious approach from lenders, likely as a result of the current uncertainty in the housing market and wider economy. However, fewer approvals and the continuing squeeze on affordability is pricing an increasing number of would-be homeowners out of the market.
The borrowers who are set to suffer the most under these conditions are those who do not fit traditional high-street lending criteria. Automated credit scoring models seldom take into account the nuances often found in the credit profiles of contractors, the self-employed, or those with adverse histories.
Yet the UK workforce is changing – contractors have grown by 35% in the past three years alone. If more lenders were to offer a more personalised underwriting experience, working to understand the factors behind an individual’s circumstances, we would see an increasing number of hopeful buyers achieve their goal of homeownership.”
