Mortgage Value Rises 5% YOY

The value of residential mortgages that were issued at the end of the last quarter in 2021 was nearly five per cent more than the year before.

According to the latest figures from the Bank of England, it reached £1,613.4 billion in Q4 last year, compared with £1,541.4 billion at the end of the fourth quarter in 2020.

This is despite the value of gross mortgage advances during the period dropping by 8.4 per cent, as well as the value of new mortgage commitments declining by two per cent from the previous quarter.

The findings also showed the market is slowing returning to pre-pandemic levels, with the share for house purchases for owner occupation coming in at 53 per cent, while the share of gross advanced for re-mortgages for owner occupation increased to 28.1 per cent. Both these figures are in line with what they would were before the spread of coronavirus.

Homebuyers could be borrowing more money as house prices have been soaring lately, increasing by as much as 10.8 per cent between February 2021 and 2022.

According to recent findings from Halifax, the annual rate of growth is the highest on record since June 2007, with the average value of a UK property rising by nearly £28,000 during the 12-month period.

A typical home now costs £278,123, up from £250,908 in February 2021. Therefore, a buyer putting down a ten per cent deposit will need to find nearly £3,000 more, as well as increase the amount they need to borrow.

For a re-mortgage broker in London, give us a call today.

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances. I.I Financial Services Limited is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales company no. 10817448. Registered office Expressway G15, 1 Dock Road, London, E16 1AH.