Mortgage lending reached 13-year high in 2020

March 10, 2021 by Heidi

Surveys and Statistics

New figures released by UK Finance show that mortgage lending to homebuyers hit its highest level in 13 years during the final quarter of 2020, largely thanks to December.

According to these figures, the lending levels for December increased by 31% in comparison with the same month the year before. That played a major role in boosting the overall mortgage lending levels for the fourth quarter of 2020, which were the highest they have been for a single quarter since 2007.

The UK Finance data also shows that, across the whole year, mortgage lending levels went down during 2020 compared with 2019 – mostly due to the big drop in the second quarter when the property market was effectively closed down by the first national lockdown. However, the impressive lending levels in the fourth quarter ensured that the total for the year still exceeded expectations given the pandemic.

UK Finance has indicated that its figures suggest that the housing market will experience a slow-down in the second half of this year, when the stamp duty threshold is restored to normal levels.

Speaking to Financial Reporter, Eric Leenders from UK Finance said:

“Homebuyers looking to take advantage of the stamp duty holiday were behind the housing market’s strongest quarter for purchases in 13 years, in the final quarter of 2020.”

Buyers hoping to find and purchase their ideal homes before the stamp duty holiday comes to an end will be very likely to turn to advisors who have CeMAP training to help fast-track the process.