UK Finance comment: Clear picture emerging of mortgage market
06 December 2021
John Phillips, national operations director, Just Mortgages said: “After a tumultuous few months in the mortgage market, we are now getting a clearer picture of the year. While the spikes have inevitably been followed by drops in activity, the level of transactions have exceeded all expectations.
“The year is on course for the highest number of purchases since 2006. While activity has certainly been fuelled by the stamp duty holiday, the ‘race for space’ and trend for working from home also sparked people into action.
“Restrictive criteria for borrowers have been easing throughout the year. Perhaps this is best demonstrated by lending to self-employed borrowers. The latest data shows lending has been very similar to those for lending to self-employed and employed borrowers, and this is encouraging for the future.
“Looking ahead to 2022, demand should remain strong, but there will be less urgency for transactions. With the current imbalance in buyers and sellers, prices look set to continue increasing. However, we may reach a point where some begin to question value for money and put plans on hold.”
