Bank of England: Net mortgage borrowing surged in May


Net mortgage borrowing rose to £ 6.6bn in May from £ 3.0bn in April, Bank of England currency and credit statistics for May 2021 revealed.

However, it remained below the record high of £ 11.4 billion in March of this year.

Mortgage approvals for home purchases were 87,500 in May, up slightly from 86,900 in April, but lower than the recent high of 103,200 in November 2020.

stamp duty

Stamp duty cost buyers £ 4.2bn in 2021

Jonathan Stinton, Head of Intermediate Relations at Coventry Building Society, said: “It’s no surprise that the mortgage market continues to perform well, with buyers keen to move before the first stamp duty holiday change at the end of the month. month of June.

“There’s also a lot of competition among lenders, with mortgage rates approaching record lows in some cases – of course great news for borrowers.”

“We expect the figures for June to be even higher and activity to return to more normal levels after the stamp duty threshold is lowered to £ 250,000.”

Andrew Montlake, Managing Director of Coreco, added: “Although the odds of exceeding the stamp duty deadline were low, mortgage approvals remained high in May.

“This shows that record lending rates and the drastic shift to working from home have contributed as much to transaction levels as the tax savings. The ripple effect of a fundamental lack of stock is pent-up demand, particularly among first-time buyers and owners, which will support activity during the summer.

“Lenders’ increased appetite for independent borrowers is also driving mortgage underwriting. Lenders are increasingly finding that self-employment may be less risky than employment in today’s market. “


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