The number of mortgages approved in the UK reached one of it’s highest levels in the past two years in June.
Last month the number of mortgages given the go-ahead for house purchases rose to 42,653 up from 42,407 in May and close to April’s two-year high of 42,792, according to data from UK Finance.
Analysts said the spike in approvals could be attributed to the UK avoiding crashing out of the EU at the end of March.
EY Item Club chief economic adviser Howard Archer said: “June’s mortgage data ties in with the view that housing market activity has received some help from the avoidance of a disruptive Brexit at the end of March, but the overall benefit has been relatively limited.
“Improved consumer purchasing power and robust employment growth have also recently been helpful for the housing market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Encouragingly, the number of mortgages for home purchase rose in June compared with the same month last year, despite all the continued uncertainty over Brexit.
“Hopefully, the installation of a new prime minister at number ten will effect a positive change for the wider economy and housing market, although it is still very early days.”
Meanwhile, credit card lending growth slowed in June. Net credit card linking contracted from £247m in May to £119m last month.
By Jess Clark
Source: City AM