Mortgage approvals have reached a 14-year high, propelled by last year's property market boom.
The Bank of England’s mortgage data from the end of last year shows a 24.2% increase in mortgages agreed compared to the previous year, and at any time since the global financial crisis, with £87.7 billion worth of mortgages agreed.
In Q4 2020, mortgage lending reached £76.6 billion, with a year-on-year increase of 4.2%, whilst the share of mortgages with a low loan-to-value was 4.5% down in a year; the lowest since 2007.
Considering that the housing market was effectively closed for two months in 2020, it is incredible to see that the year ended with more approvals than the one prior.
The value of new mortgage commitments hitting a 14-year high was largely driven by homeowners who looked to move into larger properties and see savings of up to £15,000 from stamp duty tax in the process.
This activity has resulted in the annual growth rate for new mortgage commitments almost quadrupling in Q4 2020.
April should signal a turning point for first-time buyers, who will now have access to 95% mortgage options once again due to government-guaranteed support.
Having been absent until now, it's thought that the return of lower deposit mortgage products will lead to more positive growth for the sector in 2021.
As we head into the popular seasons for home selling, with schools and businesses reopening and the vaccine program continuing to take effect, we'd like to help you with your plans this year.
To learn your property's value, visit our website.