May 4, 2021, 10:20 am
Net mortgage borrowing reached a record £11.8 billion in March, according to the Bank of England (Anthony Devlin/PA)
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Net mortgage borrowing reached a record £11.8 billion in March, according to the Bank of England.
It was the strongest figure since records started in April 1993, the bank’s money and credit report said.
Housing market experts said those home owners who are not moving are taking advantage of low mortgage rates to improve their properties.
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The number of mortgage approvals is lower than the recent peak of 103,100 in November 2020, showing that amounts being borrowed is soaring. One in six homes sold for above asking price last month - the highest proportion for seven years as house market shows no sign of cooling
One in six homes were bought in March for more money than the amounts that sellers were originally asking for, according to estate agents.
It marked the highest proportion of homes selling for above the asking price in about seven years.
The number of sales agreed was also the highest for the month of March since 2007, NAEA (National Association of Estate Agents) Propertymark said.
UK Net Mortgage Borrowing Reaches Record High in ‘Red Hot’ Housing Market
UK homeowners are borrowing at record high levels to take advantage of the stamp duty holiday and low interest rates, new official figures have revealed.
According to statistics released by the Bank of England on Tuesday, net mortgage borrowing reached £11.8 billion ($16.4 billion) in March, the highest figure since records began in 1993. A general view shows the Bank of England and the City of London financial district in London, UK, on Nov. 5, 2020. (John Sibley/Reuters)
House prices have boomed across Britain during the CCP (Chinese Communist Party) virus pandemic despite the most significant economic contraction in a generation. The Resolution Foundation, a London-based think tank, called it “a very odd recession.”
Government vows to turn ‘Generation Rent’ into ‘Generation Buy’
by The Week team
Rob Stothard/Getty Images
First-time buyers and current homeowners will be able to purchase a house with just a 5% deposit under a new government scheme that launches today.
Housing Secretary Robert Jenrick has promised it will “help families and young people get on the property ladder without the prohibitive burden of a large deposit” – turning “Generation Rent into Generation Buy”, the Evening Standard reports.
How does it work?
Homebuyers will be able to secure a mortgage from one of six high street lenders with only a 5% deposit. Lloyds, Santander, Barclays, HSBC and NatWest are launching mortgages under the scheme today, with Virgin Money starting in May.
twomeowsGetty Images
Becoming a homeowner is definitely more than a little bit confusing (why didn t they teach us about credit scores, mortgages and interest rates at school, please?) but it s fairly commonly known that a key barrier to getting a foot on the housing ladder is the need for a large upfront deposit.
Typically, prospective homeowners need to put forward a deposit of at least 10% of the property s overall price, although ideally up to 15% or more, if possible. Given we re in an age of inflating property prices and a lack of truly affordable housing, this chunk of money needed upfront can price many people out of owning a home. We re not called Generation Rent for nothing.