According to new figures revealed by the Bank of England, the outstanding value for all residential-related mortgage loans here in the UK has shown a spike.
The recently revealed statistics confirmed that at the end of the first financial quarter (Q1) of 2021, mortgage values were 3.6 percent higher than they were at the close of Q1 in 2020.
Released on June 8, the Bank of England’s figures also indicated that the value for brand-new mortgage commitments was a total of 15 percent higher at the end of 2021’s Q1 than at the same point last year.
The value for outstanding balances that have some arrears, however, had also increased by around 5.1 percent over the quarter, rising to £15 billion. This means it now accounts for a total of 0.96 percent of all mortgage balances currently outstanding.
Banking heads have commented that the increased appetite of buyers seeking to move house has led to the value of entirely new mortgages at a high that has not been seen since before the financial crash between 2008 and 2009.
The current crisis has seen many moving in search of bigger homes with increased space, both indoors and outside. This activity has only been amped by the stamp duty discount being extended to the end of June.
Recent reports suggest that frantic competition for properties has not slowed, and industry experts expect that the summer months will be an exceptionally busy time for the housing market.