BoE: Mortgage borrowing at record high in June

Mortgage Introducer

July 29, 2021


Bank of England (BoE) figures have revealed that mortgage borrowing reached a record high of £17.9bn in June.

The figure covers the period just before the lower stamp duty rates began to taper off from July.

In total mortgage approvals for house purchases were 81,300 in June, down from 86,900 in April.

Approvals for remortgage (which only capture remortgaging with a different lender) rose slightly to 35,400 in June, from 34,800 in May.

This remains low compared to the months running up to February 2020.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “We expected mortgage activity in June to be very high, with borrowers trying to complete ahead of the first change to the extended stamp duty holiday at the end of the month.

“While the change to the stamp duty threshold may mean a slight drop off in purchases, there are still opportunities for brokers in the second half of the year.

“With plenty of competition amongst lenders and an expected spike in maturities in October, now is the ideal time for brokers to contact their clients whose current deals are ending soon and help them to secure a mortgage that fits their needs. Adding value for their clients like this will really help to give brokers’ businesses a boost.”

Paul Stockwell, chief commercial officer at Gatehouse Bank, added: “This record borrowing has totally eclipsed the previous high set only three months earlier, and was the result of a perfect combination of pent-up demand, the race for more space and the stamp duty holiday.

“June’s financing levels were substantially higher than in March, the original stamp duty deadline, indicating that the scheme’s extension gave many buyers the breathing space they needed to complete their house move in time to achieve the savings.

“Stamp duty savings have started to taper off and approvals have dipped slightly. We could see yet another rush of sales ahead of the end of the stamp duty savings coming to an end in September, but home finance is unlikely to get close to what we saw in June.”

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