10:16 AM, 3rd June 2020, About A year ago
The Bank of England have released their money and credit statistics for April: Click here. Unsurprisingly, weakness in the housing market caused by the pandemic emergency resulted in a tumble in April’s mortgage market activity figures.
The number of mortgage approvals for house purchases fell 80% below the February level to 15,800 ( see chart 4). This was around half the number during the peak of the credit crisis, and the lowest since statistics on this subject started being recorded in 1993.
Approvals for remortgages were less affected falling by 34% since February to 34,400.
Gross new mortgage lending also fell sharply to £14.4 billion, 38% lower than in February (see chart 5) and repayments on mortgage lending reduced 26%, to £13.9 billion. This partially reflects the effect of payment holidays and a lower level of debt repayment. The sharper fall in gross lending than repayments means that net mortgage borrowing fell, and was only £0.3 billion in April compared to an increase of £4.3 billion in February. This is the lowest net increase since December 2011.
Interest rates on fixed-rate mortgages have remained stable in April and variable rate mortgages saw a drop in interest charged as the Bank base rate reduction to 0.1% will continue to filter through. The effective interest rate paid on the stock of variable rate mortgages fell 0.46% to its lowest point recorded by the figures at 2.39%.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticlePenalised over CGT due to Government emergency rules?
Next ArticleClutching at CGT straws?
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|