New data from the Bank of England shows that the net level of borrowing for residential mortgages in May rose by more than £3 billion, taking it well above the pre-pandemic 12-month average.
The average level of residential mortgage borrowing in the 12 months up to the Covid-19 pandemic was £4.3 billion. The total figure for May was £7.4 billion, marking an astonishing increase compared with the £4.2 billion borrowed for residential mortgages during April this year. These figures are taken from the new Money and Credit report issued by the Bank of England.
This report also shows a rise in the gross mortgage lending total for May. Over the course of that month it was £28.4 billion, compared with the £26.7 billion total for April.
There was a slight increase in mortgage approvals during the month as well, with 66,200 of these in May compared to 66,100 the month before. Approval levels were still slightly down on those of the 12-month average prior to the pandemic, which was 66,700.
Speaking to Financial Reporter, Richard Pike from Phoebus Software stated that levels of activity within the UK mortgage market were defying gloomy predictions in the wake of the rises in rates. He added:
“It would be easy to think that all the news of inflation and soaring prices would make many think twice about moving or buying, but for the time being that does not appear to be the case.”
Demand for CeMAP training courses so that people can become mortgage advisors also remains high.