According to the Bank of England’s Mortgage Lenders and Administrators Return (MLAR) data, the value of gross mortgage advances was 33.3% lower in Q2 2020 than in the same period last year.
It has been revealed that April to June this year saw mortgage advances of £44.1 billion, a third lower than data recorded during the same three months of 2019.
The value of new mortgage commitments was also revealed as 53.2% less at £34.3 billion.
Meanwhile, buy to let mortgage lending rose 1.2% from Q2 2019, whilst lending over 90% LVT decreased by 0.6% to 4.9% of mortgages advanced.
The Mortgage Lenders and Administrators Return is a quarterly statistical release aggregated from data provided by around 340 regulated mortgage lenders and administrators on a range of mortgage lending activities.
Rob Barnard, Director of Intermediaries at Masthaven, the development finance lender commented:
“The second quarter of the year saw a dramatic downturn in lending activities as a result of the COVID-19 pandemic, subsequent lockdown and closure of the housing market. The good news, however, is that the mortgage market is already showing early signs of the green shoots of recovery. Government initiatives such as the Stamp Duty holiday and extension of the Help to Buy equity loan scheme certainly helped to bolster demand amongst potential borrowers, and brokers also seem to be optimistic about the sector’s recovery. In fact, 71% of intermediaries said they feel confident about the market’s longer-term prospects, according to our recent broker survey.
The mortgage and short-term lending sectors have proven to be remarkably resilient over the past few months, adapting the new circumstances and ensuring they remain open for business. The release of pent-up demand post-lockdown should help to bring activity levels back on track over the coming months, with a surge in non-traditional borrowers giving brokers new opportunities to work with specialist lenders to serve this expanding market.”
Original article featured here…
source https://commercial-mortgages-broker.co.uk/news/bank-of-england-reveals-q2-lending-a-third-lower-than-last-year/
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