Gross mortgage lending in the third quarter of 2020 totalled £62.5bn, according to the Bank of England, 14.7% lower than the same period in 2019 Q3.

However, the market has picked up, with the value of new mortgage commitments 6.8% higher than a year earlier, at £78.9bn, and the highest level since 2007.

The share of mortgages advanced in the third quarter at more than 90% of the property’s value was 3.5%, 2.4 percentage points lower than a year earlier.

Carlos Thibault, board member of the Society of Mortgage Professionals, said: “The data clearly reflects the dramatic effect Covid-19 has had on the mortgage market. Conversely, there has been a significant V shaped recovery in new commitments driven by pent up demand during lockdown and the stamp duty reduction which comes to an end in March 2021.

“In terms of trends, there appears to have been a slight decrease in borrowing at the higher LTV ratios reflecting the reduction in product choice during lockdown, with an equally slight increase in pricing at the 2% to 2.99% margin above base rate.

“This reflects the rapid changes in product withdrawals and launches during this period of uncertainty. However, it is difficult to pick up the current trends in a fast changing environment due in part to the lag nature of the data provided.”

The total value of all residential mortgage loans was £1,527.3bn at the end of 2020 Q3, said the Bank of England – some 2.9% higher than a year earlier.