Bank of England Mortgage Approvals Exceed Expectation Again

Covering the latest mortgage approval figures from the Bank of England, Group CEO of Enness Global Mortgages, Islay Robinson, commented: “These latest mortgage approval numbers highlight a market at its most buoyant in the month of January since before the financial crisis of thirteen years ago. Activity is far higher than normal levels and this has no doubt been driven by the current stamp duty holiday.

“Homebuyers are shrugging off any fears of a pandemic property decline in their rush to secure a stamp duty free purchase. This frenzy looks likely to continue until summer, given Rishi Sunak’s potential pending announcement of an extension via Wednesday’s budget.

“The question for sellers, estate agents and mortgage brokers is, ‘what happens once the levy is reinstated?’

“We may be about to take a step back from the cliff-edge should the stamp duty holiday be extended. However, this is only prolonging the inevitable and, if anything, will only steepen the gradient of any potential market decline.

“We should perhaps make the best of these ‘sunny days’ whilst we can before another stamp duty deadline countdown leaves us teetering on the edge once again.”