Mortgage approvals at record high since 2007

Mortgage approvals at record high since 2007

12:12 PM, 4th January 2021, About 3 years ago

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The Bank of England has released the latest figures for total UK mortgage approvals by lenders in November totalling 104,969. This is the highest number of mortgage approvals in one month since 2007 as can be seen in the historic data in the graph below.

This compares and is a sharp recovery from the lowest point in the data set provided by May this year at the height of the first lockdown with only 9,348 mortgage approvals.

David Ross, MD for Hometrack responded to the figures saying: “Mortgage approvals in November were the highest since 2007 and the UK housing market has enjoyed its busiest Christmas in over ten years. While the economic impact of Covid-19 has yet to be felt, news of the vaccine roll-out, combined with the UK agreeing a deal on Brexit and the extension of furlough, should help maintain confidence in the market.

“Lenders are acting responsibly in the current buoyant market, closely monitoring the economy before making decisions in anticipation of changes in demand from homeovers and the prudent supply of mortgages.”

Group CEO of Enness Global Mortgages, Islay Robinson, commented:

“While many of us will have had a somewhat muted festive period, this certainly hasn’t been the case where the UK property market is concerned, with the latest figures showing the highest level of monthly mortgage approvals since August 2007.

“This leading indicator of buyer appetite has been on an upward trajectory since May and demonstrates the huge influx of market activity seen since the market reopened. So although 2020 ended with a whimper, the market shows no signs of slowing just yet and this huge degree of momentum is certain to carry through to this year.

“Of course, the fast-approaching stamp duty deadline will dampen buyer demand to some extent. However, the availability of record low mortgage rates for those in a position to secure them should ensure demand remains robust beyond March which will bring long-term benefit to the market as a whole.”

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