So far down the road, the housingmarket and mortgage lending seems to be sustaining well in the UK, despite thecontinued struggle with the COVID19 and the lockdown restrictions.
As the restrictions are slowlybeing lifted, the economy of the country seems to be headed towards an upwardtrajectory. Business activities are booming, unemployment rate is falling asthe EU trade is reopening.
Even the housing marketsrecovered well. As per the latest MLAR statistics for March 2021, the mortgagelending stands at £1,501 billion at the end of January 2021.
During the same period, HerMajesty’s Land Registry reported an annual increase in the house prices for thefirst-time homebuyers to be at 6.8 percent. That averages a new house’sprice to be around £208,336 in the UK.
The mortgage interest rateaveraged at about 2.09 percent, bringing the annual mortgage interestpayment per household to be at £2,854 and lowering the monthly paymentsby 0.6 percent.
Even the house rents witnessed anincrease in the UK market. As per the latest stats from the Office for NationalStatistics or ONS, compared to the last 12 months, the private rentals went upby 1.4 percent in the UK.
Although the consumer lendingtook a dip of £2.79 billion during the month, the same period saw themortgage lending market perform well with a recorded net increase of £5.17billion. This added to the outstanding mortgage loans, bringing their totalto £1,541.4 billion. An increase of 2.9 percent compared to lastyear.
Compared to last year, the advancemortgage also saw a rise of 4.2 percent, bringing its value to £76.6billion. Whereas, the new mortgage commitments rose by 24.2 percent,valued at £87.7 billion. It is also the recorded highest since 2007.
