Mortgage approvals reached record low levels last month, the latest Bank of England figures reveal, with around 9,300 new loans approved in May, down from 15,900 in April and 90% since February. Approvals for remortgages with a different lender dropped to 30,400 in the month, down 42% on February’s total. However, net mortgage borrowing picked up to £1.2bn in May, after the closed housing market led to zero borrowing in April. The monthly rise in borrowing was due to more new borrowing by households, rather than lower repayments. Analysts warned that a “two-tier” mortgage market has emerged, with banks and building societies willing to lend to homeowners with large deposits but excluding first-time buyers.
The Guardian (30/06/2020) City AM (30/06/2020)