According to latest figures, the number of mortgage purchase approvals continued to increase sharply in August, the highest figure seen since October 2007. Purchase approvals rose from 66,300 in July to 84,700 in August, with a total of 418,000 approvals in 2020, compared with 524,000 in the same period in 2019. At 33,400, approvals for remortgaging with a different lender are little changed compared to July, and remain 36% lower than in February 2020.
The recent figures from the Bank of England show that net mortgage borrowing was £3.1 billion in August, following borrowing of £2.9 billion in July. In April, mortgage borrowing reached £0.5 billion, below the average of £4.2 billion in the six months to February 2020. First-time buyers have been effected by changes in mortgage lenders’ criteria, as fewer products at 90% LTV are available on the market and income criteria becomes stricter.
The next couple of months will be a crucial period for the many customers nearing the end of their mortgage payment holidays. For borrowers, now is the perfect time to be getting in touch with their financial advisers. Those borrowers who are considering applying for another payment holiday before the October deadline, opting for an alternative solution may be better suited to their current needs.
Mortgage brokers are legally required to work in your best interest — not in the interest of the bank or lender. At Cornerstone Finance, we will work with you to understand your goals and your financial situation, in order to provide the best product to meet your needs. For advice on your mortgage, contact us today.