Fall In Residential Mortgage Lending In 2020

It will probably not come as a surprise to read that the number of residential mortgages completed in 2020 here in the UK dropped when compared with 2019 according to figures published by UK Finance. After all, here in the UK, early 2020 saw the start of the pandemic due to the coronavirus.

The figures published by UK Finance reveal that the number of house purchase mortgages for first time buyers in 2020 amounted to 303,000 whereas in 2019 the figure totalled 351,000. That is a fall of 48,000 with that equating to a reduction of 13.7%. The number of house purchase mortgages to homeowners in 2020 totalled 309,000 compared to 344,000 in 2020. That is a drop of 35,000 with that equating to a fall of 10.2%. The number of property purchase mortgages for buy to let landlords amounted to 64,500 in 2020 whereas in 2019 the figure was 72,300. That is a drop of 7,800 that equates to a fall of 10.8%. Therefore the total number of house purchase mortgages in 2020 amounted to 676,500 compared to 767,300 in 2019. That is a drop of 90,800 equating to a fall of 11.8%.

As you can see, the above figures reveal that there was a significant drop in the number of mortgages completed to buy residential/buy to let properties last year in comparison to 2019.

When you look at the figures for re-mortgages here in the UK they do not make for good reading. The number of external re-mortgages for residential properties in the UK in 2020 amounted to 351,800 whereas in 2019 the figure was 446,400. That is a drop of 94,600 that equates to a reduction of 21.2%. The number of internal refinance product tranches for residential properties amounted to 1,171,400 in 2020 whereas in 2019 the figure was 1,203, 200. That is a reduction of 31,800 that equates to a fall of 2.6%. The number of external re-mortgages for buy to lets amounted to 158,400 in 2020 compared to 182,900 in 2019, That is a drop of 24,500 that equates to a fall of 13.4%.

Again, you can see that there was a significant fall in the number of re-mortgages for residential/buy to let properties in 2020 when compared with the previous year.

It will not come as a surprise to read that the amount of gross mortgage lending fell in 2020. Last year the figure was £243,086 million compared to £267,932 million in 2019. That is a drop of £24,846 million that equates to a fall of 9.3%.

The number of mortgages in arrears at the end of 2020 amounted to 83,260 compared to 75,280 at the end of 2019. That is a difference of 7,980 that equates to an increase of 10.6%. The number of mortgage repossessions in 2020 totalled 2,660 whereas in 2019 the figure was 8,000. That is a drop of 5,340 equating to a fall of 66.8%.

It is to be hoped that 2020 sees an improvement in the number of residential mortgages being completed as lockdown measures due to the pandemic are eased.

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