Figures released from the Bank of England show the number of mortgage approvals has increased in June.
Mortgage approvals have increased for the first time this year to 67,196 although they remain 12% down on January.
The increase is after approvals reached an 11 month low in May with 62,007 after the mortgage market review (MMR) introduced new rules.
New procedures for Lenders require them to check affordability of mortgages for home movers, first time buyers or remortgage buyers, including income and outgoings such as child care, holidays and living costs.
This does not apply to buy-to-let landlords as they must have a 25% deposit and show the rental income can exceed 125% of the mortgage interest.
This resulted in an initial backlog of applications that lenders have now cleared with mortgage levels returning to their previous levels.
Mortgage figures set to improve
The Council of Mortgage Lenders (CML) is projecting improved figures for the mortgage market for the next two years.
With an improving economy the CML estimates mortgage lending for 2014 at £209 billion, a rise of £13 billion on previous estimates and 18% higher than 2013 figures.
Estimates for 2015 are £220 billion although the CML say that an interest rate rise would have an impact on the figures and it is still uncertain how household incomes will rise in the future relative to house prices.
The bank of England has said previously that any rise in interest rates would be gradual giving the first time buyers over the past six year that have never experienced an interest rate rise time to adjust.
Even with recent improvements in mortgage approvals for June, these figures are significantly below the 76,214 recorded in 2008 before the financial crisis.
Rightmove has said that the housing market is slowing as it is taking twice as long to sell property in London now as it did in March.
For older homeowners there is higher activity with equity release buyers accessing cash in their property using a lifetime mortgage to help maintain their standard of living as costs rise or even buy a more expensive home.
What are your next steps?
Call our LCM mortgage brokers if you are a buy-to-let landlord with a property, remortgaging and want the best mortgage deal, buying your first home or you are planning to move home.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your home to spend on anything such as repay an interest only mortgage or pay for care at home.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage monthly cost calculators, property value tracker chart and equity release calculator.
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