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Mortgage lending hits highest quarterly level since 2007

Christina Hoghton
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Christina Hoghton

Lending in the second quarter of this year rocketed, as buyers rushed to beat the Stamp Duty holiday deadline

The value of mortgage lending in the second quarter of this year was £89.0 billion, over double the amount seen in the same quarter last year, according to figures jointly published by the Bank of England and the Financial Services Authority.

It was also the highest level of quarterly lending since 2007, before the credit crunch and global financial crisis.

The value of new mortgage commitments (lending agreed to be advanced in the coming months) was almost 2.5 times greater than a year earlier, at £85.6 billion.

Stuart Law, CEO of the Assetz group, said: “It is no surprise that lending levels hit record highs in Q2 as buyers rushed to push purchases through before the Stamp Duty holiday began to taper off. The impact of the SDLT holiday has been immense, creating exceptional levels of market activity despite the unprecedented conditions brought about by the pandemic.

“While tax relief has undoubtedly driven demand, over the coming months and years I expect to see this demand sustain, even without tax savings as a motivator. This will be the result of a combination of factors including ongoing low interest rates which make mortgages more affordable, but also more deep-rooted societal shifts around lifestyle and work which will prompt many more people to look for a new home.”