Greycoat: Mortgage Reapprovals Plummet to Lowest Levels Since 1999

Those looking to get pre-approved for a second mortgage, or to purchase a second home are finding that many of them are not getting approved for the larger mortgage that they hoped to be able to take out. According to Greycoat, many of these individuals own a small home, flat, or residence and are looking to upsize or increase their living space.

This, of course, comes along with taking out a larger mortgage in order to pay for that space. However, the approval ratings that these individuals are getting has sunk to a 24-year-low. Greycoat specialists explain that this happens as banks and lenders turn away more individuals than they have in the last quarter-century. 

As of September of 2023, the lowest number of mortgage approvals was handed out with a mere 20,600 approvals, which marks the lowest numbers since 1999. Mortgage rates have basically flattened to help end a volatile year that saw both ups and downs in the housing market. Interest rates are still exceptionally high, Greycoat adds. 

It is at 4.8%, but it’s better than the 6.5% interest rates we were seeing people pay a year ago, Greycoat assures. That was after 5.25 interest rates were generally accepted as the new normal following 24 interest rate hikes by the UK government in an attempt to tamper the skyrocketing inflation rates that were seemingly uncontrollable leading up to these interest hikes. 

These interest rates have drastically tampered home sales in London and cooled the market while everyone tries to get control over inflation that is causing other sectors of life to try to control the costs of things. These, Greycoat finally adds, like utilities or food just to name a few things that are also costing Londoners more than ever before.

Those looking to get pre-approved for a second mortgage, or to purchase a second home are finding that many of them are not getting approved for the larger mortgage that they hoped to be able to take out. According to Greycoat, many of these individuals own a small home, flat, or residence and are looking…