Mortgage applications double between 2019 and 2020

Jake Carter

December 11, 2020

New home mortgage applications have risen by 51% between 2019 and 2020, according to data collected by Trussle.

The research shows that more homeowners are moving to a new home at 56% than remortgaging on their current home at 44%.

In contrast, in 2019, the majority of homeowners were prioritising remortgaging at 63% over moving to a new house purchase at 37%.

Trussle attributes this shift to the stamp duty holiday.

Homeowner appetite for remortgaging started off the year strong, with applications in January up 196% month-on-month.

In addition, as the UK entered lockdown remortgage applications jumped 54% during March.

Trussle also noted that mortgage applications from next time buyers surge by over 73% in June, as reports of a possible stamp duty holiday gained momentum.

As a result of the strong demand, it now takes an estimated 115 days to complete on a property in England.

Furthermore, Trussle revealed that 800,000 homeowners are on standard variable rates.

Miles Robinson, head of mortgages at Trussle, said: “After an uncertain year, it’s encouraging to see house prices rising and the property market moving, with a sustained interest for house moves.

“While many homeowners contemplate buying a new home, it’s important to keep on top of your current mortgage and consider remortgage when the time is right.

“Every year, thousands of homeowners unknowingly move onto a high standard variable rate when their mortgage deal ends and their monthly payments can increase considerably.

“Homeowners can save £344 on average per month by remortgaging, which is a significant sum.”

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