UK mortgage approvals heading up

In April, official mortgage approvals made the largest monthly gain since February 2009. Fundamental conditions of housing demand are continuing to improve. 

The 2-year fixed rate mortgage rate has halved in the last two years, and credit availability remains sufficient.

It is notable that even the uncertainty of, at that time, the impending election and the risks of a mansion tax being imposed did not prevent approvals from rising strongly in April.

Even so, it seems likely that the election result will have added further buoyancy to mortgage demand in May so we should expect a further strong increase in that month.