Mortgage lending is tracking the hyper-active sales market and in March hits the highest level since records began in April 1993, the Bank of England (pictured) has reported.
Its latest Money and Credit report reveals that net mortgage borrowing hit £11.8 billion driven by 82,700 house purchases, although this is fewer transactions than the recent all-time peak of 103,000 recorded by the BoE in November last year.
But the amount borrowed during March remains a huge leap when compared to February, when borrowing hit £6.2 billion. Just over a year ago the BoE cut its base lending rate to 0.25%.
“Mortgage market momentum has been growing month on month since the start of the year and, while the Bank of England today reports that net mortgage borrowing reached an 18-year high, our figures show that April is set to outperform March,” says David Ross, MD of Hometrack (pictured).
“Our data shows that £150bn of property transactions were completed in the first 15 weeks of 2021.
“Running ten weeks ahead of a typical year, this level of sales wouldn’t normally be achieved until the end of June.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, adds: “Mortgage approvals are always a good indicator of future direction of travel for the market.
“And although these numbers are a little lower than the previous month, they reinforce what we have been seeing on the ground – buyers are determined to move even though many know the log jam in the system will mean they won’t be able to take advantage of the stamp duty concession before the tapering begins at the end of June.”