The increase in mortgage approvals “reflects an increasingly stable and competitive mortgage market,” according to Lucian Cook, head of residential research at real estate company Savills.
“Buyers have returned to a housing market that has proven more resilient than we feared would be the case six months ago,” says the author. “Their ability to better plan their prospective mortgage outgoings has brought them back.”
However, he emphasised that rising costs were still having an impact on prospective home buyers’ finances.
For the housing market, spring is typically regarded as the busiest season of the year. For viewings, people have historically waited for a little bit better weather, and activity peaked between Christmas and the summer holiday season.
The Bank of England reported that, when looking at household non-mortgage borrowing, the annual growth rate for consumer credit increased for the sixth consecutive month, accelerating from 7.7% in February to 7.9% in March.
Personal loans, credit cards, and overdrafts are all forms of consumer credit.
The sad truth is that for many households, using credit to pay for day-to-day living expenses is the only option, according to Alice Haine, a personal financial expert at the investment platform Bestinvest.