Comparisons will inevitably be made to pre-pandemic times, and for the mortgage market, there is positive news. In January 2022, there were 74,000 mortgage approvals, according to data from the Bank of England (BOE). In February 2020, the last “normal” month before the first lockdown, there were 66,700 mortgage approvals.

The most recent “Money and Credit” statistical release from the BOE indicates that this is the highest rate of approval since July 2021. Then, there were 75,900 mortgage approvals. Of course, this period relates to the stamp duty holiday, a real boom time in the UK housing market.

The importance of mortgage approvals for the BOE is significant in indicating future borrowing.

Remortgage figures are also rising

It is also essential to stay up to date with remortgaging figures. For January 2022, there were 46,200. This is the highest since February 2020, which reached 49,500.

The net borrowing of mortgage debt by people/households rose to £5.9 billion, an increase of £1.9bn on the December 2021 figures. The pre-pandemic average in the 12 months to February 2020 stood at £4.3 billion.

What do industry specialists say about the Bank of England findings?

The Chief Executive of more2life, a mortgage lender focusing on later life lending, Dave Harris said the BOE findings were a “welcome confirmation” that the mortgage market remains in excellent shape “in spite of wider economic concerns”. Dave Harris also said; “Activity is levelling out from the volatility we saw last year and returning to strong and stable pre-pandemic levels.”

While it is good to see market positivity and optimism surrounding the mortgage sector, there is no denying inflationary pressures are a concern for the market. Dave Harris also said; “Although the road ahead looks promising, inflation is likely to act as a speedbump. With many borrowers’ saving accounts and pension pots having already taken a hit in recent months, we expect a growing number of older homeowners to turn to equity release to keep pace with the rising cost of living. UK house prices have seen record growth in recent months, making the chance to unlock this added equity a silver lining for many. As such, Q1 will see equity release become an increasingly attractive means to augment retirement income and afford a comfortable later life.”

The chief executive officer at MSS, a company offering technology‑led services for the UK property market, Simon Jackson said; “The latest statistics, particularly around net borrowing and mortgage approvals, appear to show the strength of the UK housing market at the moment. January can often be a quiet month in the housing market calendar, but this doesn’t appear to have been the case this year. We should also not forget that the stamp duty holiday benefits fully unwound some months ago and yet activity clearly remains high with the strength of demand for property holding up. This certainly bodes well for the remainder of the year.”

How to explore your mortgage options with The Money Hub

If you are looking into taking out a mortgage in 2022, but if you don’t devote the time or energy to finding the best deal, you might miss on great value. Thankfully, help is at hand.

Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.