Residential Mortgage Lending Statistics Make For Interesting Reading

The Financial Conduct Authority (FCA) has produced some statistics relating to residential mortgage lending. Below we provide some of the information that we thought you may find of interest.

At the end of the first quarter of 2020, the outstanding amount of residential mortgages stood at £1,509 billion. This figure was 3.9% more than at the end of the first quarter of 2019.

The amount of gross residential mortgage advances in the first quarter of 2020 stood at £65.8 billion. This figure was 3.8% more than in the first quarter of 2019.

The amount that lenders had agreed to provide in the next few months was £67.6 billion. This figure was 6.1% more than 12 months previously.

The above figures look re-assuring but it will be interesting to look at the figures covering the second quarter of 2020 bearing in mind the coronavirus pandemic. We presume that those figures will not look too good.

It is only in the last few weeks that people are now able to move house so it will be interesting to see if there will be an improvement in the mortgage lending figures over the coming weeks.

The Building Societies Association produced some figures relating to all UK mortgage approvals broken down on a monthly basis that show in April 2020 there was a total of 54,564. Of those, 16,421 were for house purchase, 32,137 were for remortgages and 6,006 were for other purposes. In March 2020 there was a total of 122, 628. Of those, 62,929 were for house purchase, 46,721 were for remortgages and 12,978 were for other purposes.

It may be a little while before the residential mortgage sector makes some form of recovery in view of the pandemic. Unfortunately, it is being forecast that there will be a big increase in unemployment so this may lead to more repossessions and it may have an impact upon the number of new mortgage applications. We will continue to provide updates.

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