It’s starting to feel a little bit like the thing that has dominated the headlines for so long might just be running out of steam.
The COVID-19 pandemic has wreaked havoc with daily life. But as thousands upon thousands of us have now been vaccinated and with Prime Minister Boris Johnson this week saying that social distancing could be finished by June, it’s starting to feel like the tide is turning.
While it’s too soon to say that things are back to normal, there are signs in the mortgage industry that people are looking to make up for lost time.
The latest stats from the Bank of England show that in March 2021, just as the tide started to look like turning, huge sums were borrowed for mortgages.
What do the latest statistics say?
These statistics come from the Bank of England’s monthly Money and Credit release.
The most impressive statistic shows that £11.8 billion was the net mortgage borrowing figure for March 2021.
Not only is this more than was being borrowed each month pre-pandemic, but it’s the highest net mortgage borrowing figure recorded since the Bank of England started collating such monthly figures in 1993.
The previous highest recorded month of net borrowing was in October 2006, when £10.4 billion was borrowed.
What’s behind these figures?
With people keen to go ahead with their pre-pandemic plans as soon as possible, it’s clear there was plenty of mortgage-related activity this March.
Additional motivations for those looking to borrow may well have included factors such as the extended stamp duty holiday and the 95% LTV mortgage announcement, which received backing from the government.
These figures were also backed by a high number of approvals for house purchases from lenders according to the Bank of England. Lenders have been keen to jump back from the effects of the pandemic, and the positive statistics are likely indicative of a perfect storm when it comes to mortgage lending.
What does that mean for me?
Though these statistics are for March 2021, the high approval rates and borrowing figures could well continue into the summer months.
With the whole mortgage industry starting to find its footing again, the remainder of this year could be opportune when it comes to securing that perfect home.
As a contractor or freelancer, it’s always advisable to get expert guidance when dealing with mortgage lenders. Contractor mortgage brokers such as Roots Mortgages can support here.
We hope you are able to find that perfect property for you, and long may this purple patch within the mortgage industry continue!