Increase in mortgage approvals

The number of mortgage approvals grew 8% in June 2014, according to data released by the Bank of England.

The figures reveal that there were 67,196 mortgage approvals over the month.

This is the first time since January that mortgage approvals have grown month-on-month.

The number of approved mortgages had been dropping for much of the year following the introduction of the Mortgage Market Review (MMR) in April.

The MMR introduced stricter lending standards by requiring lenders to vet mortgage applicants more thoroughly on their finances.

Paul Hunt, managing director of Phoebus Software, said:

"After a drop in lending most months this year as lenders have got to grips with the MMR, the slight rise in June's lending figures could well be the first indication that lenders have now got to grips with the new underwriting required and can start processing larger volumes.

"Of course one swallow doesn't make a spring and at the start of what is usually the summer downturn it is likely that we will need to wait until September/October to see if this is the start of a series of rises or just a monthly blip."