UK Markets close in 4 hrs 16 mins

Home movers account for record share of mortgage lending in early 2021

·1-min read

Home movers dominated the mortgage market in the first quarter of 2021, accounting for a record proportion of home loans being handed out, figures suggest.

The sector accounted for 42% of gross mortgage lending, the highest share since the records started in 2007, according to figures released by the Bank of England and the Financial Conduct Authority (FCA).

Other loans were handed out to first-time buyers, or to buy-to-let landlords or people remortgaging, for example.

The total value of mortgage advances in the first quarter of 2021 was £83.3 billion, 26.5% higher than the same period a year earlier, and the highest level since the fourth quarter of 2007.

Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “There has been frenzied activity in the market, with movers searching for larger homes and more outdoor space, while the extension of the stamp duty discount to the end of June added more fuel to the fire in the first quarter of this year.

“The biggest stamp duty savings run out in just a few weeks’ time, yet measures from other housing indices suggest the frantic competition for property continues unabated.”

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting