9/20/2015

BBA Mortgage Approvals

BBA
This morning the British Bankers Association publish their latest housing data.
The report in question is the monthly BBA Mortgage Approvals Report.
This document reports the number of newly approved mortgages issued by Banks that are members of the BBA. As BBA member banks account for some 65% of all mortgage lending this report is a significant indicator on the health of the UK housing market.
Mortgage approvals have been increasing during 2015 with July’s issue reporting approvals standing at 44,500. The market is expecting the August to report to show that there have ACFX been 46,000 new mortgages.
Mortgage approvals are a leading indicator on the health of the UK housing market and can act as a barometer for both demand of UK assets and economic sentiment.
Increasing demand for mortgages could indicate that demand for UK assets is increasing and that optimism that both UK economy is in good health and that UK asset prices will continue to appreciate in value.
The London property market has acted as a safe haven in recent years as foreign investors look for safety in bricks and mortar. Such investors furthermore have been attracted by a well-developed and regulated rental market and the possibility of further capital appreciation which is due to a lack of supply.
The strength of the UK property market has come at a time when the British Pound has appreciated in value. As such a drop, off in mortgage approvals could signal the beginning of a rotation out of UK assets as international capital looks for value elsewhere.http://www.acfx.net/bba-mortgage-approvals

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