Mortgages reach a 13-year high: More than 100,000 loans for house purchases approved in November

Mortgages reach a 13-year high: More than 100,000 loans for house purchases got the go-ahead in November, marking highest monthly figure for more than three years

  • Some 105,000 loans for house purchases got the go ahead, the BoE said
  • This was up from 98,300 in October and marked the highest monthly figure since August 2007
  •  Experts said some home buyers had been motivated by the stamp duty holiday

Mortgage approvals were at a 13-year high in November, Bank of England figures show.

Some 105,000 loans for house purchases got the go-ahead, up from 98,300 in October and marking the highest monthly figure since August 2007.

The surge in approvals meant that by November, they had nearly caught up with levels recorded in 2019 – despite the housing market effectively being shut during the first Covid-19 lockdown.

There were 715,300 house purchase approvals up to November 2020, compared with 722,000 during the same period in 2019, the Bank said.

Mark Harris, of mortgage broker SPF Private Clients, said home buyers had been motivated by the stamp duty holiday, which ends on March 31, as well as the desire to move to a different location.

Mr Harris added: ‘We expect mortgage rates to remain competitive into the spring as borrowers attempt to take advantage of the stamp duty concession.’

Mortgage approvals were at a 13-year high in November, Bank of England figures show. Some 105,000 loans for house purchases got the go-ahead, up from 98,300 in October and marking the highest monthly figure since August 2007 [Stock image]

Andrew Montlake, managing director at mortgage broker Coreco, said: ‘The closing stages of 2020 were among the busiest we’ve ever been as a broker.

‘That looks set to continue in the first quarter, too, ahead of the looming stamp duty deadline.’

But he added: ‘Many prospective buyers with small deposits are now fully aware that their chances of getting a mortgage agreed are remote.’

Looking at non-mortgage borrowing, the Bank said consumer credit contracted by 6.7% annually in November – marking a new low since records started in 1994.

Consumer credit includes borrowing using credit cards, personal loans and overdrafts.

Borrowing using credit cards fell by 14.5% annually – which was also a new low on the Bank’s records.

The surge in approvals meant that by November, they had nearly caught up with levels recorded in 2019 ¿ despite the housing market effectively being shut during the first Covid-19 lockdown. There were 715,300 house purchase approvals up to November 2020, compared with 722,000 during the same period in 2019, the Bank of England said [Stock image]

The surge in approvals meant that by November, they had nearly caught up with levels recorded in 2019 – despite the housing market effectively being shut during the first Covid-19 lockdown. There were 715,300 house purchase approvals up to November 2020, compared with 722,000 during the same period in 2019, the Bank of England said [Stock image]

The Bank’s Money and Credit report said that since the start of March, households have repaid £17.3 billion-worth of consumer credit.

It added that the rate on interest-charging overdrafts was 20.62% in November, above the rate of 10.32% in March 2020, before new rules ending overdraft fees, which borrowers previously paid on top of interest rates, came into effect.

Typical rates on new personal loans increased in November to 5.46%, but remain low compared with rates of around 7% in early 2020, the report said.

The typical credit card borrowing rate fell to 17.49% in November – a new low since similar records started.

Household deposits increased by £17.6 billion in November, but there were significant withdrawals of £6.2 billion from NS&I (National Savings and Investments) accounts.

NS&I previously announced a string of interest rate reductions, which kicked in from November.

The Treasury-backed body previously said the reductions would mean it aligned its savings products against the rates offered by the banks and building societies.