Increase In Balances Outstanding On Residential Mortgages In September 2020
According to figures produced by the Building Societies Association, the level of balances outstanding on residential mortgages here in the UK in September 2020 rose to £1,478,188 million. This was an increase when compared with August 2020 when the figure was £1,472,734 million.
Banks and building societies accounted for £1,312, 402 million. Other specialist lenders accounted for £111,007 million. Other lenders accounted for £54,780 million.
Gross mortgage lending in September 2020 totalled £21,880 million that was an increase in comparison to August 2020 when the figure was £19,066 million. The total number of mortgage applications in September 2020 was 122,928 whereas in August 2020 the figure was 106,170. Gross mortgage lending for house purchases in September 2020 amounted to £14,388 million, remortgages amounted to £6,508 million and others amounted to £983 million.
Net mortgage lending by banks and building societies in September 2020 amounted to £5,370 million, by specialist lenders £343 million and by other lenders to £143 million. That is a total of £5,856 million with this being a big increase when compared with August 2020 when the figure was £3,203 million.
It is pleasing to see these gross residential mortgage figures for September 2020 of £21,880 million although it should be borne in mind that they are lower than September 2019 when the figure was £22,323 million. As stated earlier, the total number of mortgage applications in September 2020 was 122,928 whereas in September 2019 the figure was 133,128.
There can be no doubt that the pandemic has had a negative impact upon the number of residential mortgage applications being processed in recent months. At the time of writing, we are currently in a second wave of COVID-19 so it will be interesting to see what happens to the residential mortgage sector in the next few months. We are approaching the festive season so it will be interesting to see if there is a drop in the number of residential mortgage applications in the coming weeks. Needless to say, we will continue to keep our readers up to date with interesting data in this respect.