Mortgage approvals hit 13-year high
Caz Blake-Symes • December 1, 2020
Positive news for borrowers
Adapted from an article by Isla MacFarlane www.showhouse.co.uk
According to the latest figures from the Bank of England, more mortgages are getting rubber-stamped than at any time since September 2007.
Net mortgage borrowing remained robust at £4.3 billion in October 2020. Mortgage approvals for house purchase increased further to 97,500, the highest since September 2007. Effective interest rates on new mortgage borrowing ticked up to 1.78%.
Mark Harris, chief executive of SPF Private Clients, said: “With mortgages approvals at their highest level since September 2007, the market continues to be robust. But the circumstances are very different to 2007; back then, those highs were followed by the credit crunch but this time around there is far more scrutiny on mortgage underwriting and the assessment of affordability. This, combined with historic low interest rates, mean we should not see a repeat of that crisis.
“There is more good news for mortgage borrowers with greater availability of 90 per cent loan-to-value mortgages as a number of lenders returned to the market in recent days. This should help bring down rates on high LTVs, making those deals more accessible, and further boosting the market.”
The number of mortgage approvals for house purchase continued increasing in October, to 97,500 from 92,100 in September. This was the highest number of approvals since September 2007, 33% higher than approvals in February 2020.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The Bank of England figures are always a reliable indicator of past and future housing market activity. As have others in the recent past, they reveal just how determined buyers have been to take advantage of the stamp duty holiday and continuing low interest rates.
“Judging by what has been happening on the ground since, we expect the numbers to remain robust for at least the next month or two until the reduction in activity which we have noticed over the last few weeks as the stamp duty deadline draws close, begins to have an impact on transaction numbers. The underlying strength of the market does not appear to be waning, at least for the time being.”
For further details about the service we offer as a fully independent mortgage brokers or any other mortgage information book your FREE CONSULTATION with one of our expert Mortgage Advisers please contact us
Bristol Mortgages Online www.bristolmortgagesonline.com
Tel 0117 325 1511
Bath Mortgages Online www.bathmortgagesonline.com
Tel 01225 584 888
Exeter Mortgages Online www.exetermortgagesonline.com
Tel 01392 690 888
Email info@swmortgages.com
With the Budget uncertainty now lifted, buyers and sellers can return to making decisions about their next move. Removing the threat of a new annual property tax from 210,000 homes for sale will help revive market activity in higher-value areas. However, the lack of any stamp duty reform means homebuyers will continue
Please click here to see our November newsletter This month’s edition is packed full of interesting articles, including What does the Budget mean for you? Interest-Only Mortgages For Later Life. Need Short-Term Property Finance? What is the Renters’ Rights Act, and what does it mean for tenants? What You Should Know About Second Charge Mortgages Time to Remortgage? Stunning 5-star Google Reviews! Let Us Help You If You Have Adverse Credit How to Contact Us You can also read more articles on our Blog. We hope you enjoy this Newsletter. If you have any queries, please call Phil Clark on 0117 325 1511 or email info@swmortgages.com
Rachel Reeves has set out details of her second Budget since becoming Chancellor.
Some measures from the yearly tax and spending plan had already been announced in the days leading up to the statement.
We are thrilled to be able to offer this fantastic product through the Family Building Society.
This interest-only mortgage gives those of retirement age and beyond the opportunity to free up equity from their home, without the huge costs often faced when considering Equity Release or a Lifetime Mortgage.
Thinking about buying a new property before selling your current one? Or maybe you need quick funds to complete a renovation or secure an investment opportunity? You’re not alone. With today’s fast-moving property market, many homeowners and investors are turning to bridging loans to bridge the gap.
The changes laid out in the Renters’ Rights Bill were the biggest shakeup of rental legislation in decades. In October 2025, the Bill gained Royal Assent, which means the bill becomes the ‘Renters’ Rights Act’, and will now become law.
Pre-Budget speculation over possible tax changes is impacting market activity for homes over £500,000. The rest of the mainstream housing market is carrying on, largely unaffected.
Thinking about borrowing more money, but worried about losing your current mortgage deal? You’re not alone. With interest rates shifting in 2025, many homeowners are
Rental market conditions are starting to normalise as supply and demand rebalance. The affordability