Mortgage approvals rise to the highest in 13 years in November 2020!
With mortgage approvals rising to the highest in 13 years in November 2020, the property market shows no signs of a slow down.
According to the Bank of England, a total of 105,000 mortgages were agreed in November, the highest since August 2007, breaking the 100,000 mark of approved mortgages in 13 years. A rise from the 98,300 approved mortgages in October, which also saw a 13 year high since 2007.
Lenders are also gaining confidence in the property market by bringing more mortgage products to buyers with smaller deposits. According to Moneyfacts, there are currently 160 mortgage products for buyers with a 10% deposit, up from a low of 51 mortgage deals available in October last year. However, overall numbers are still significantly lower than the 762 mortgage deals available for these buyers in January 2020.
Many factors are adding to the high transaction of property sales during these winter months, a combination of the Stamp Duty Holiday announcement, the end of the current Help-To-Buy scheme, alongside people re-evaluating their living arrangements since the first national lockdown.
The recent increase in mortgages for people with a 10% deposit, is a good sign for first-time buyers, showing signs that lenders feel confident about the property market and are happy to be more risk-averse. That being said, there are only a handful of mortgage products available for buyers with a 5% deposit.
A lower deposit does also mean a higher rate of interest to pay in comparison to last year. Currently, a mortgage with a 90% Loan-To-Value (LTV) with an interest-rate fixed for two years, has an average interest rate of 3.65% per annum, compared to 2.59% a year earlier despite the Bank of England base rate falling by 0.65%. For buyers with a 95% LTV, the cost for a two-year fixed deal is on average 4.44% per annum.
The property market is showing no signs of a slow down, and with more mortgage products available in the market, it's certainly a good time to be buying or selling a home.
If you are looking to buy or sell a property, speak with one of our property experts today by calling us on 0116 266 9977.
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