UK mortgage approvals hit a record 13-year high
- 17th November 2020
- Buying Property News
More mortgages are now being approved, helping property prices to rally
Mortgage approvals in the UK have hit a 13-year high, with the number of approvals jumping to 91,454 in September 2020, up from 85,530 in August 2020, according to Bank of England data.
The increase in approvals is predominately being driven by the stamp duty holiday introduced by the UK Government on 8th July 2020 and set to end on 31st March 2021. Record-low interest rates are also encouraging activity in the housing market, contributing to the rise in applications and approvals.
Net mortgage borrowing jumped to £4.8bn in September, up from £3bn the previous month. This is higher than the £4bn average for the six months leading up to February 2020, when the pandemic first hit.
Stephen Ludlow, Chairman at ludlowthompson says: “The rapid increase in mortgage approvals is further proof that the housing market is outperforming the wider economy. Buyers are rushing to get approvals so that they can take advantage of the Stamp Duty Holiday.”
“First-time buyers are benefitting from low-interest rates as well as help from the Bank of Mum and Dad.”
“Existing homeowners are also keen to capitalise on low rates and the Stamp Duty holiday, to move to homes that have more space.”
“There is also the sense that if the residential property market weakens too much that the Chancellor may look at other forms of assistance, like a new stamp duty holiday, or further assistance for first-time buyers.”
Throughout the second lockdown, ludlowthompson’s Sales and Letting agents will continue to arrange viewings for prospective buyers and renters via video, but in person viewings are also available that comply with social distancing rules.
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The rapid increase in mortgage approvals is further proof that the housing market is outperforming the wider economy. Buyers are rushing to get approvals so that they can take advantage of the Stamp Duty Holiday.
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