After the financial crash in 2007/08 has the UK housing market recovered? We explore all the latest statistics to see if the market has bounced back or not and which mortgage lenders are currently offering the best deals.
As jobs keep disappearing and salaries continue to be cut, the number of people who are eligible for a mortgage is dropping. To make it worse, the Bank of England is taking a harder approach when it comes to handing out approvals.
The Bank of England mortgage approvals were rising steadily at the beginning of the year but started descreasing in March when the number of approvals fell by 24% from February to March. Between March and April, they fell another 72%.
In total, the mortgage approvals have fallen 87% over the past 4 months, from approving £73.5 million in February 2020 to only £9.3 million in May.
However, 2018 was the highest number of first-time buyer mortgages since 2006 (402,800).
Over 60% of first-time buyers get mortgages with terms more than 25 years.
Remortgaging is the act of switching your existing mortgage to a new deal. This might be to raise some cash, reduce the interest rate on your mortgage or consolidate your debts for example.
There were 16,820 new remortgages with additional borrowing in December 2019.
This is 5.9% more than in the same month in 2018.
The average additional amount borrowed in November was £50,702.
There were 16,490 new pound-for-pound remortgages (with no additional borrowing) in November 2019, 0.5% fewer than in December 2018.
Mortgages in arrears
If your mortgage is in arrears it means your payments are overdue – this is expressed as a percentage of your total outstanding balance.
There are 72,380 homeowner mortgages in arrears of 2.5% or more of the outstanding balance (Q1 2020).
This is 6% lower than in Q1 2019.
Within this total, 22,050 homeowner mortgages were in significant arrears (representing 10% or more of the outstanding balance).
There are 4,420buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance (Q1 2020).
12 properties were repossessed every day in Q1 2020.
This amounts to one property every two hours.
Every two hours a property was repossessed in Q1 2020.
Finder’s mortgage expert Matthew Boyle’s best advice
The UK’s coronavirus lockdown saw the housing market – and the mortgage market – effectively paused during spring 2020. Many lenders cut the number of products they had on offer, particularly at higher LTVs, as they concentrated on their existing mortgage customers and dealing with mortgage holiday requests. However, as property viewings and sale completions started to return post-lockdown, the housing market has shown to be surprisingly robust in terms of asking prices. In turn, we are beginning to see a larger number of mortgage deals become available to home buyers again.
Despite a flat few years in the country’s house-selling sector, the size of the UK’s mortgage market has remained steady. In the third quarter of 2019, the outstanding value of all residential mortgage loans stood at £1,486 billion – 3.9% higher than a year earlier.
The number of first-time buyer mortgages and the number of loans for home movers were both on the up last year. It’s a trend that looks set to continue in 2020. The housing market has already seen a recent uptick, possibly due to post-election confidence and the annual spring bounce in property sales.
It’s not just London or the south-east where the residential property market is looking positive. The latest data released by the Land Registry showed that December 2019 was the first month since February 2018 that property prices rose across every region in the UK.
With interest rates remaining comparatively low and demand for property staying relatively high, the mortgage market continues to be a competitive space. Would-be house buyers and movers will be looking for the best rates on mortgages from their lenders, whether opting for a fixed rate or variable home loan.
The Money Charity
Click here for more research. For all media enquiries, please contact
Matt Mckenna Head of UK communications T: +44 20 8191 8806
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife.
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