The number of mortgage approvals reached 105,000 in November, with net mortgage borrowing also increasing to £5.7bn.
The number of mortgage approvals in November 2020 increased to the highest level since August 2007, according to the Bank of England Money & Credit data.
The number of mortgage approvals reached 105,000 in November, with net mortgage borrowing also increasing to £5.7bn.
In addition, effective interest rates on new mortgage borrowing ticked up to 1.83%.
Household deposits increased by £17.6bn in November, however there were significant withdrawals from national savings and investment accounts according to the data.
Bank borrowing by small and medium-sized businesses was noted at £1.8bn, while net borrowing by large businesses was £0.2bn.
Tomer Aboody, director of property lender MT Finance, said: “The Bank of England figures provide further confirmation of the prevailing strength and confidence in the housing market, with the highest mortgage approval levels and further borrowings in over a decade.
“Households are looking to maximise space in their current homes by extending, converting lofts and refurbishing, as more time is spent at home.
“With mortgage rates so low, taking advantage of existing equity in homes has enabled people to borrow more for living expenses as they also deal with concerns over future employment and income, with so many industries affected by the pandemic.
“Household deposits have increased with people saving, due to not being able to go away, out for dinners or even shopping.
“Consumers are being frugal with their spending and considering the threat of a possible recession on the horizon.
“How the government will look to tackle any forthcoming concerns with the Budget, the end of furlough and stamp duty relief will be interesting, since this new wave of the virus has come as a surprise and therefore further potential assistance is desperately needed.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Not surprisingly, the mortgage market improved considerably at the end of the year but we shouldn’t look too closely at these figures because they reflect a period of particular improvement in market activity of the previous few months.
“Moves have slowed since although many are still trying hard to take advantage of the stamp duty holiday, which will be ending very soon.
“The likelihood of further lockdown restrictions will bring short-term pain to the market which hopefully won’t be reflected in reduced values.
“Certainly the greater availability of a vaccine, on the other hand, will provide some optimism.”
