The total amount agreed by lenders to be advanced in the coming months was £85.9 billion, some £8 billion greater than the previous quarter and 17 per cent higher than the same period in 2021
The mortgage market has remained relatively sturdy over the previous quarter as new Bank of England (BoE) data revealed on Wednesday that the value of new mortgage commitments in Q3 2022 was the highest seen since the same period in 2007.
Specifically, the total amount agreed by lenders to be advanced in the coming months was £85.9 billion, some £8 billion greater than the previous quarter and 17 per cent higher than the same period in 2021.
While the Q3 data only briefly covers the market volatility following the Mini Budget in September, it is evident that appetite for new borrowing through the period was robust and well-met by lenders, said Andrew Fisher – Chief Commercial Officer at Freedom Finance.
Ahead of the Bank of England’s interest rate decision on Thursday which will reportedly see the base rise by 50 basis points to 3.5 per cent, Fisher said: It appears likely that the base rate will rise again this week and could increase further in 2023 which will add pressure to the mortgage market, testing the affordability limits for many potential borrowers.
Measures from the FCA and the sector, however, mean it is well-placed to continue meeting consumer demand for mortgages from both new and existing borrowers, he said.
Nathan Emerson, Chief Executive of Propertymark, commented on the picture with regards to the previous quarter: Today’s announcement from the Financial Policy Committee paints a brighter picture than first imagined.
He said: Despite mortgage, energy and other costs rising, it is reported that households are in a better financial position than predicted when compared to the global recession in 1990 and the financial crisis in 2007/08.
