Mortgages  

Brokers upbeat as mortgage approvals maintain 13-year high

Brokers upbeat as mortgage approvals maintain 13-year high
 Credit: Chris Ratcliffe/Bloomberg

Brokers are optimistic as mortgage approvals for house purchases have remained at a 13-year high.

Data published yesterday (January 4) by the Bank of England showed mortgage approvals for house purchases reached 105,000 in November, the highest level since August 2007.

It comes after approvals increased to 97,500 in October, the highest since September 2007.

Month

Mortgage approvals for house purchase

August

84,700

September

91,500

October

97,500

November

105,000

Source: Bank of England

Andrew Montlake, managing director at Coreco, predicted a busy quarter ahead of the stamp duty holiday deadline.

He said: “Despite the uncertainties in the economy, people’s desire to take advantage of the stamp duty holiday drove mortgage approvals to a 13-year high in November.

“The closing stages of 2020 were among the busiest we’ve ever been as a broker. That looks set to continue in the first quarter, too, ahead of the looming stamp duty deadline.”

John Phillips, national operations director at Just Mortgages, said he anticipated the market would keep performing well despite expectations of a drop in activity as the stamp duty holiday deadline draws near.

Mr Phillips said: “Beyond the stamp duty holiday, recent transactions have been motivated by people’s priorities changing. With working from home becoming the norm for many, an extra bedroom to use as a study has been high on the priority list.

“And looking ahead to warmer weather, there will be plenty looking for a garden so if there is another lockdown, they have space to get out and about in. With vaccines being rolled out, we expect confidence to build in the property market and 2021 should be another strong year.”

The Intermediary Mortgage Lenders Association (IMLA) has also predicted that the five-year anniversary of the stamp duty surcharge will enable demand in the mortgage market to stay strong this year despite the end of the stamp duty holiday.

chloe.cheung@ft.com

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