The number of mortgage approvals in the UK leapt by 8% in June – the first rise in five months following the introduction of more stringent borrowing tests.

According to the Bank of England, mortgage approvals totalled 67,196 in June, up from a month previously and above forecasts of 62,600.

This counters reports of a stuttering housing recovery and fuels speculation that the recent loss of momentum in the housing market is only temporary.

April saw the introduction of tougher checks on borrower affordability, while the BoE also announced measures to limit excessive lending last month.

Questions regarding repayments and affordability are covered under the Mortgage Market Review, with anyone looking for a mortgage needing to supply substantially more information than was required previously.

Improvements on recent months

There is still some way to go to reach the levels seen before the financial crisis in 2008 when 90,000 mortgages were approved, while it is also behind the most recent peak of 76,000 seen in January.

House prices have also risen rapidly in recent months and BoE governor Mark Carney has stressed the need to carefully manage the housing market.

Mortgage lending in June rose by £2.1 billion according to the Bank, while measures to calm the market have existed since January when the focus of the Funding for Lending Scheme turned to businesses.

The Council for Mortgage Lenders has also revised its forecasts for the mortgage market in both 2014 and 2015 as economic conditions continue to improve throughout the UK.

Lending to small businesses also increased in June, increasing by £235 million which could provide much needed finance for those businesses.

Managing finances to cover mortgage payments

With changes to mortgage affordability, more importance is placed on the ability of individuals to manage their finances to ensure payments can be made.

For anyone wishing to limit their everyday spending, a prepaid card could be an option as only the amount on the card at any given moment can be spent.

Financial management is extremely important, so keeping spending in check with a prepaid card is a great way of ensuring you don’t spend more than you would like.

The cards can easily be topped up or replaced if required, while accounts can be checked regularly online if needed.

This should enable money to be kept aside for mortgage repayments or for other outgoings relating to property if they are required.