Article featured in Mortgage Introducer
The first quarter of 2020 saw a
6.1% year-on-year increase in the value of new mortgage commitments (lending agreed
to be advanced in the coming months) to £67.6bn, according to the latest
figures from the Bank of England.
The BoE’s data also revealed that the outstanding value
of all residential mortgages loans was £1,509bn at the end of 2020 Q1, 3.9%
higher than a year earlier. Overall the value of gross mortgage advances in
2020 Q1 was £65.8bn, 3.8% higher than in 2019 Q1. Tomer Aboody, director of
property lender MT Finance, said: “Overall, and as expected, the lending market
enjoyed a great first quarter with plenty of confidence, more lending done and
higher loan-to-values offered by the banks, along with cheaper mortgage rates
compared with the same period a year ago.
This was set to be the trend for the
year ahead after years of uncertainty created by Brexit. Then the pandemic hit
and the picture in the second quarter will be very different. But what it
ultimately shows is that the fundamentals are there. Lenders are keen to lend
and now, as we wait for lockdown to end, we need some stimulus from the government
to give the housing market the boost it needs.”
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