The first quarter of 2020 saw a 6.1% year-on-year increase in the value of new mortgage commitments (lending agreed to be advanced in the coming months) to £67.6bn, according to the latest figures from the Bank of England.
The BoE’s data also revealed that the outstanding value of all residential mortgages loans was £1,509bn at the end of 2020 Q1, 3.9% higher than a year earlier.
Overall the value of gross mortgage advances in 2020 Q1 was £65.8bn, 3.8% higher than in 2019 Q1.
Tomer Aboody, director of property lender MT Finance, said: “Overall, and as expected, the lending market enjoyed a great first quarter with plenty of confidence, more lending done and higher loan-to-values offered by the banks, along with cheaper mortgage rates compared with the same period a year ago.
“This was set to be the trend for the year ahead after years of uncertainty created by Brexit.
“Then the pandemic hit and the picture in the second quarter will be very different. But what it ultimately shows is that the fundamentals are there.
“Lenders are keen to lend and now, as we wait for lockdown to end, we need some stimulus from the government to give the housing market the boost it needs.”