Huge number of mortgages approved within the first months of 2021
A whopping £87.7 billion of mortgages were approved within the closing months of 2020!
This is 24.2% more than were approved the year prior. It is also the most mortgages that have been approved since the global financial crisis.
In the fourth quarter of 2020 mortgage lending reached an impressive £76.6 billion, a 4.2% increase year on year.
The percentage of low loan to value mortgages being approved was down 4.2% from last year. This is the lowest number since records began.
Sarah Coles from Hargreaves Lansdown has compared the property market to a “Marathon” rather than a sprint. She argues that mortgages are being snapped up at a faster rate than before the financial crisis.
Not only were mortgages booming at the end of last year, but also at the beginning of this year. In the first 3 months of 2021 mortgage approvals are at their highest rate in 14 years.
Paul Stockwell, Chief commercial officer at Gatehouse Bank, has argued that the stamp duty holiday extension announced earlier this month will ensure that most of these mortgage agreements will carry out till completion.