Comments on Bank of England mortgage data

Responding to today’s figures from the Bank of England showing that mortgage approvals for house purchases increased further to 91,500 in September, the highest since September 2007, Aneesh Varma, Founder and CEO at Aire, comments: “The Bank of England’s mortgage figures are starting to show the downstream impact of the pandemic on consumers’ day-to-day lives. Having proven their ability to work remotely, people are rethinking their city centre living and accelerating their moves to family friendly locations in the suburbs and countryside. We are seeing a big behavioural shift here. Consumers are making very different decisions to those a year ago and putting down new roots for at least the next five to ten years.

“Outside of the mortgage market, we can see from the Bank of England’s figures that those who can are being more cautious and reducing their use of credit. Consumers have learned from 2008, they are reducing their costs and being very careful about where they are spending their money.

“Lenders need to understand that their customers have changed in the last few months. Millions of people are facing significant financial hardship and need more support than before, while others are making very different decisions and will move to providers that are best prepared to understand their needs. There has never been more need for lenders to understand what is happening to their customers, yet many are still struggling to get their contact centres working well enough to even talk to their customers.”

Authorised by the FCA in 2016, Aire is the UK’s fourth credit reference agency. It helps lenders assess credit applications and support existing customers by gathering financial and lifestyle information directly from the consumer, and validating it for accuracy using machine learning.