• About Us
  • Contact Us
  • Home
  • Write for us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News
  • Entertainment News
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News
  • Entertainment News
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

Mortgage approvals up 40% on long-term average

April 5, 2021
in Parenting
0
Mortgage approvals up 40% on long-term average


Pandemic property boom drives mortgage approvals up 38% on long-term average, Bank of England data shows

  • Mortgages for new home purchases 38% above 10-year average in February
  • Approvals dipped slightly compared with January but could surge again following the extension of the stamp duty tax holiday and first-time buyer boosts
  • People borrowed £6.2bn against their homes, the highest level in five years

By Helen Crane For This Is Money

Published: 07:48 EDT, 29 March 2021 | Updated: 08:23 EDT, 29 March 2021

The pandemic property boom has driven mortgage approvals up nearly 40 per cent on the 10-year average, according to official data.

A total of 87,700 mortgages for new house purchases were approved in February, compared to an average of 63,500 over the past 10 years, according to Bank of England figures.

This represented a fall compared to the peak of 103,700 approvals in November 2020, and also a 10 per cent fall compared to the 97,400 approved in January 2021.

However, the snapshot was taken at a time when home buyers believed they were unlikely to benefit from the Government’s stamp duty holiday, which could save them up to £15,000 on their property purchase.

Home loan: The number of mortgages approved for new homes was nearly 40% more than the ten-year average in February 2021, according to data from the Bank of England

Home loan: The number of mortgages approved for new homes was nearly 40% more than the ten-year average in February 2021, according to data from the Bank of England

The tax holiday, which eliminates stamp duty on the portion of a house purchase under £500,000, was initially set to end on 31 March.

It will continue in its current form until the end of June, and then with a lower nil rate band of £250,000 until the end of September which is likely to mean mortgage approvals tick higher again in the coming months.

February is also often a notoriously slow month for approvals, with interest usually picking up in Easter – while it is also the shortest month of the year.

Jeremy Leaf, north London estate agent, said: ‘The dip in approvals occurred as many thought that benefiting from the stamp duty concession would be impossible in view of the backlog.

‘However, since the deadline was extended and vaccination rollout has taken off, the market has gained new impetus and more balance as sellers in particular are not as fearful of welcoming visitors to their homes.’

On the rise: Mortgage approvals dipped dramatically during the first national lockdown in summer 2020, but have now reached highs not seen for more than a decade

On the rise: Mortgage approvals dipped dramatically during the first national lockdown in summer 2020, but have now reached highs not seen for more than a decade

People borrowed a net total of £6.2billion secured against their homes in February 2021, the highest since March 2016.

The average rate of a new mortgage has also edged up slightly to 1.91 per cent. Rates have been gradually increasing since they hit a low of 1.72 per cent in August 2020.

Property agents are predicting a busy start to the traditional spring home buying season.

Anthony Codling, founder and chief executive of property data website Twindig, said: ‘The increasing trend in mortgage rates is likely to encourage more homebuyers to take advantage of the stamp duty holiday.

‘Property portals and estate agents are likely to be very busy this Easter weekend.’

Looking further ahead, first-time buyers will also be spurred on by the Government’s announcement of a mortgage guarantee scheme which will allow them to borrow 95 per cent of a property’s value.

Several major lenders will begin to offer this in April, but others have jumped the gun and launched their own five per cent deposit mortgages independent of the Government scheme.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘Mortgage rates remain low and with the government introducing a guarantee scheme on high loan-to-values, there will be more choice for first-time buyers, the lifeblood of the market.

‘With several lenders including Skipton, Yorkshire Building Society and TSB already launching 95 per cent deals, and others expected to follow suit in coming weeks, rates could also potentially fall, which is further good news for borrowers.’

Best mortgages

Advertisement

Share or comment on this article:

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Tags: approvalsaveragelongtermmortgage
Previous Post

Aluminum-anode batteries offer sustainable alternative

Next Post

Katey Sagal is ‘Rebel’ with a cause in new ABC series

Related Posts

Have You Properly Prepared Your Kids for Defeat?
Parenting

Have You Properly Prepared Your Kids for Defeat?

Source: Myriams-Fotos/Pixabay An education policy...

Read more
Quand des sentiments du passé t’empêchent de rester calme face à tes enfants
Parenting

Quand des sentiments du passé t’empêchent de rester calme face à tes enfants

Comme la plupart des parents,...

Read more
Ørsted: I Own Shares And Have Sold Options, This Is A ‘Buy’ (DNNGY)
Parenting

Ørsted: I Own Shares And Have Sold Options, This Is A ‘Buy’ (DNNGY)

wera Rodsawang/Moment via Getty Images...

Read more
Schizophrenia: Treatment Options Explained – The
Parenting

Schizophrenia: Treatment Options Explained – The

According to Canada’s largest mental...

Read more
Mediterranean Diet Could Help to Reduce the Risk of
Parenting

Mediterranean Diet Could Help to Reduce the Risk of

In a study assessing the...

Read more
Load More
Next Post
Katey Sagal is ‘Rebel’ with a cause in new ABC series

Katey Sagal is 'Rebel' with a cause in new ABC series

  • Trending
  • Comments
  • Latest
poker

Poker Strategies of Celebrity Players: Tips from the Pros

An Ava Max Song Led The Netherlands’ Far Right Party To Implode

An Ava Max Song Led The Netherlands’ Far Right Party To Implode

Espoma | Video: Stone Raised Bed Prep. with Summer Rayne Oakes || Flock Finger Lakes

Espoma | Video: Stone Raised Bed Prep. with Summer Rayne Oakes || Flock Finger Lakes

Keke Palmer Subtly Reveals the Sex of Her Baby

Keke Palmer Subtly Reveals the Sex of Her Baby

Manchester United v. Brighton | PREMIER LEAGUE HIGHLIGHTS | 8/7/2022 | NBC Sports

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Francis Ngannou leaves the UFC | The BT Sport gang discuss the heavyweight shift | with Mike Bisping

6,000 Steps Provide Significant Cardiovascular Benefits

6,000 Steps Provide Significant Cardiovascular Benefits

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Manchester United v. Brighton | PREMIER LEAGUE HIGHLIGHTS | 8/7/2022 | NBC Sports

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Francis Ngannou leaves the UFC | The BT Sport gang discuss the heavyweight shift | with Mike Bisping

Manchester United v. Brighton | PREMIER LEAGUE HIGHLIGHTS | 8/7/2022 | NBC Sports

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Pussy Riot founder uses ashes as ammo for anti-Putin exhibit

Francis Ngannou leaves the UFC | The BT Sport gang discuss the heavyweight shift | with Mike Bisping

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Go to mobile version