Mortgage advances value jumps 27% in a year: BoEMortgage advances value jumps 27% in a year: BoE https://www.ngiresidential.co.uk/wp-content/uploads/2018/05/remortgaging-1024x576.jpg 1024 576 NGI Residential Mortgages NGI Residential Mortgages https://www.ngiresidential.co.uk/wp-content/uploads/2018/05/remortgaging-1024x576.jpg
The value of gross mortgage advances made in the first quarter of this year came to £83.3bn, says the Bank of England, which is 26.5% higher than in Q1 2020.
This is the highest level seen since Q4 2007, when the value came to £86.6bn, the bank adds.
It also says that the outstanding value of residential mortgage loans at the end of this quarter rose 3.6% annually, totalling £1.6tn, and that the value of new mortgage commitments rose 15% within the same time frame, to £77.5bn.
In Q1 2021, the share of mortgages advanced with an interest rate lower than 2% above the bank rate was 59.1%, 5.7 percentage points lower than Q4 2020, and 13.3% lower than a year ago.
And the share with interest rates at 3% or more above the bank rate rose 3.9 percentage points across the quarter to 11.9%. A year ago, this stood at 7.95%.
Additionally, the share of mortgages advanced with an LTV of 90% or more in the first quarter of this year shrank from 1.2% last quarter to 1.1%. In Q1 2020, 5.2% of advanced mortgages were at this LTV.
The BoE says points out that this latest 90% LTV figure is the lowest seen since 2007.
Meanwhile, the value of outstanding balances with some arrears came to £15bn in Q1 2021, a rise of 5.1% over the quarter. This means that 0.96% of outstanding mortgages fall into this category.
* Content Source – Mortgage Strategy.
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