BBA Mortgage Approvals
What is 'BBA Mortgage Approvals'
BBA mortgage approvals are the number of mortgage or home loans collectively approved by members of the British Bankers Association (BBA). This data is now published by a new trade association, U.K. Finance, which replaced the BBA in 2018, after it merged with five other organizations.
BREAKING DOWN 'BBA Mortgage Approvals'
BBA mortgage approvals, published monthly, are a leading indicator for the state of the housing market in the United Kingdom. In the United States, where mortgage approvals are called mortgage applications, this data is published by the Mortgage Bankers Association. Its MBA purchase index is a leading indicator for the U.S. housing market, along with several other U.S. housing market indicators.
A rising number of mortgage approvals is usually an indication that the housing market is growing. In the U.K., mortgage approvals are closely correlated with house prices.
U.K. Finance publishes statistics on new lending flows, at both approval and completion stages, and balances outstanding. New lending is further broken down into first-time buyers, movers, buy-to-let and remortgages. It also published quarterly data on regional lending trends in the U.K.
U.K. Finance represents around 300 firms in the U.K. providing credit, banking, markets and payment-related services. The new organization takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action U.K., Payments U.K. and the U.K. Cards Association.