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25 Must-Know Mortgage Statistics & Trends

Are You in the Mortgage Market? Find Out What's New and What's Next

Are You Looking for a Mortgage? It Can Be Difficult to Find All of the Information That You Need to Know. This Post Is Full Of Data on Mortgages in the UK so That You Don't Have to Spend Hours Searching for What You Need.

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Due to the fact that the housing market is continually changing, it’s critical to keep an eye on different factors that can affect the market. By analysing the statistics and trends you’ll become a lot more clued up on what’s going on.

Scroll down for up-to-date real estate trends and mortgage statistics.

#01. 58% Of Ads Are Under Contract Within 2 Weeks & 45% Within 1 Week

It’s no secret that supply is low and demand is high, resulting in one of the UK’s most competitive housing markets ever. The sense of urgency is palpable.

Many properties are also selling faster. In fact, 58% of ads are under contract within two weeks, and 45% within one week.

58% Of Ads Are Under Contract Within 2 Weeks & 45% Within 1 Week

#02. Borrowers Are Increasingly Opting for 15-Year Loans

The usage of conventional loans has also expanded. According to the most recent data from ICE, conventional loans account for 81% of all originations. That’s up from 70% in December of this year.

The demand for 15-year mortgages is on the rise. According to the Urban Institute, in November, 17% of all mortgage loans had 15-year maturities. This has risen from a year ago when it was only 10%.

Borrowers Are Increasingly Opting for 15-Year Loans

#03. Minor Increase of Mortgages in Arrears

As seen by the statistics, mortgage payment deferrals have continued to assist customers in remaining on time with their mortgage payments. This includes those who weren’t in financial hardship at the start of the pandemic

In comparison to the previous quarter, there was a minor rise of 230 mortgages in arrears. There was a total of 77,640 homeowner mortgages in arrears of 2.5% or more of the outstanding balance.

Minor Increase of Mortgages in Arrears

#04. Prices Predicted to Fall After the Stamp Duty Holiday

The average property price increased by £15,409 between June and November of last year. The stamp duty vacation, on the other hand, will end on March 31, 2021.

If the tax incentive isn’t extended, some analysts fear demand would fall in spring. Depending on where you’re trying to buy, this might result in reduced asking prices.

mortgage statistics

#05. Around 5.37% of Mortgage Borrowers Were in Forbearance

Last year, the CARES Act permitted millions of homeowners to put their mortgage payments on hold, and many of them are still doing so today.

According to MBA, around 5.37% of mortgage borrowers were in forbearance as of mid-January 2021, or nearly 2.7 million homes.

Around 5.37% of Mortgage Borrowers Were in Forbearance

#06. Unsecured Consumer Loans Decreased by 8.6%

Unsecured lending to households was 8.6% lower in March 2020, according to figures released by the Bank of England. The first coronavirus lockdown in the United Kingdom occurred in late March 2020.

Unsecured Consumer Loans Decreased by 8.6%

#07. In April, Housing Prices in the UK Rose by 2.1%

Property prices in the United Kingdom increased by 2.1% in April, the largest monthly increase in more than 17 year, according to a mortgage business.

housing prices increase

#08. 190 Homeowner Mortgaged Homes & 180 Buy-to-Let Mortgaged Homes Were Taken Into Possession

In the first quarter of 2021, only 190 homeowner mortgaged homes & 180 buy-to-let mortgaged homes were taken into possession despite FCA guidelines allowing businesses to resume litigation from November 2020. Lenders voluntarily agreed to stop possessions from December 2020 to January 2021 in accordance with the Government’s ‘winter truce.’

In Q1 2021, there were 40 more possession instances than the previous quarter, when the client requested possession of the property was unoccupied.

190 Homeowner Mortgaged Homes & 180 Buy-to-Let Mortgaged Homes Were Taken Into Possession

#09. A 30-Year Fixed-Rate Mortgage Had an Average Rate of 2.74%

In January 2021 mortgage rates were near an all-time low. In January, the average rate on a 30-year fixed-rate mortgage was 2.74%, up from 3.62% the previous month and 4.76% a decade before.

mortgage average rate increased

#10. Home Purchases in the UK Decreased

In March 2021, the number of mortgage approvals for home purchases in the UK fell to 82.74 thousand, down from 87.39 thousand the previous month and below market estimates of 92.3 thousand.

The number of approvals, which is a leading predictor of future lending, fell from a recent high of 103.1 thousand in November 2020 but remained solid when compared to February 2020.

Home Purchases in the UK Decreased

#11. 28% of Deals on Houses Failed

Despite the fact that the business is exempt from the lockdown, there are indicators that the market is declining.

The number of agreed-upon house deals that fell through has increased from 17% in July to over a quarter (28%) in December, according to a property site.

deals on houses

#12. There’s Been an Increase of 620 Homeowner Mortgages in Serious Arrears

There were 27,280 homeowner mortgages with severe arrears (representing 10% or more of the outstanding sum) in the overall total. This is up by 620 from the previous quarter. Since Q1 2020, this statistic has gradually climbed.

Customers that had many missed payments prior to the pandemic account for the majority of the increase.

These borrowers may have taken advantage of the entire six months of payment deferrals and are most likely getting or are in need of the targeted forbearance assistance offered by lenders.

Increase of 620 Homeowner Mortgages in Serious Arrears

#13. Loans Are Taking Longer to Process

Mortgage loans are taking longer to complete and finalise than they were a year ago, owing to increased demand and lender backlogs.

According to ICE statistics, in December mortgage loans were closed in 58 days on average. This is an almost two-week difference over the previous year.

loans to process

#14. 60% of All Completed Loans Were Refinances

Last year saw a significant increase in refinancing activity. Based on recent data, it appears that this trend will continue.

In December, refinancing accounted for 60% of all completed loans, and 68% of conventional loans, according to ICE’s monthly origination report.

#15. The Year-to-Date Foreclosure Filings Decreased by 17%

This isn’t surprising given the many foreclosure prohibitions and mortgage forbearance alternatives still available, yet both foreclosure filings and mortgage delinquencies have decreased.

According to ATTOM Data, foreclosure filings fell 1% from March to April, bringing the year-to-date total to 17%. In April, only 3,700 foreclosures were started, a new low for the month.

Year-to-Date Foreclosure Filings Decreased

#16. Mortgage Rates May Remain Close to 3%

Mortgage rates may remain close to 3%. However, when it comes to overall patterns a gradual increase in rates is considerably more likely than a significant decline.

By the end of the summer, several organisations estimate rates of 3.5% or 3.6%. Others believe that in the same time frame, we’ll witness a more moderate gain of roughly 3.3%.

mortgage rate remains

#17. People Expect Their Properties to Deliver More

People are spending more time at home than ever before. Working from home is expected to continue throughout the year, regardless of what happens with the pandemic.

As a result, increasing house space will be critical for the mortgage market this year. Housing upgrades are likely to continue to be important. People are remortgaging their homes to guarantee that they can adapt to their new lifestyle.

People Expect Their Properties to Deliver More

#18. Location is Becoming Even More Important

The area where one lives has become more significant over the last year, as a result of the pandemic. This tendency is expected to continue as buyers are increasingly wanting to relocate to greener places where they can enjoy the great outdoors right on their doorstep,

As a result, areas such as the New Forest have seen higher-than-average housing values. In reality, the average property price in communities like Ashurst, Lyndhurst, and Brockenhurst is £475,000.

location becoming more

#19. Housing Prices Have Increased by 6.5% Compared to Last Year

In general, the housing market has outperformed most forecasts this year.

Property prices have risen the most in six years, according to many estimates. The Nationwide reported that UK house prices are 6.5% higher than they were a year ago.

Few statisticians, on the other hand, foresee a drop in home prices this year, with the majority anticipating a moderate 2% increase.

Housing Prices Have Increased by 6.5% Compared to Last Year

#20. Mortgage & Remortgage Timeframes

The second half of the year has seen a surge in activity in the mortgage market. The stamp duty break sparked a flurry of transactions, and lenders and conveyancers have been scrambling to keep up.

To make matters worse, lenders are now doing additional checks to verify affordability.

Due to the pandemic, lenders have become more risk-averse. Thus, incorporating additional due diligence methods to analyse how the pandemic has impacted or is anticipated to affect purchasers. This is done to verify buyers can actually afford the purchase or refinance.

mortgage

#21. More Than 32% Of Homes Sold for More Than the Asking Amount

In April 2021, the percentage of houses sold for more than the asking price was 32%, surpassing the previous high of 19% in May 2014. Demand has surged as purchasers want to save money by taking advantage of the stamp duty break.

The decreased stamp duty rate will be in effect until September 30, 2021. As a result, demand for property financings, such as mortgages, secured loans, and bridging loans, is increasing.

Half of All Homeowners With a Mortgage Have at Least 50% Equity in Their Property

#22. Landlords Will Consider All of Their Choices

It’s been predicted that landlords would lock in shorter-term mortgages in 2020, citing the uncertainties around Brexit and the future profitability of buy-to-let as reasons for caution.

There’s little clarity on the future of the eviction procedure and regulations following Brexit, and it’s amplified by the pandemic. It’s likely to be more of the same this year, with landlords opting for two-year fixes rather than longer-term arrangements to keep their options open.

Landlords Will Consider All of Their Choices

#23. Brexit Doesn’t Impact the Property Market

The housing market has greater stability now that a Brexit agreement has been reached, and this is unlikely to have a significant influence on the industry in the near future.

Of course, if the Brexit deal results in further job losses in the long run, this will have an impact on property values, but in the near term, we will likely continue to see stability.

brexit does not impact the market

#24. Rent in Several City Centre Sites, Including London, Plummeted.

Rent in London has decreased by -8.0%, while rent in Edinburgh by -3.1%, Birmingham by -3.0%, & Leeds by 1.2%.

Over the same period, annual rental growth outside of London was up, with the North East of England leading the way with a 4.8% increase.

Rent in Several City Centre Sites, Including London, Plummeted

#25. Mortgaged Home Buyers Make Up 58% Of the Population, While First-Time Buyers Make Up Only 44%

At the start of 2020, the proportion of mortgaged home-movers and first-time buyers (FTBs) was almost equal. However, home-movers now account for 58% of the population, while FTBs account for just 44%.

Following the end of the SDLT vacation, the situation is likely to alter again..

Mortgaged Home Buyers Make Up 58% Of the Population, While First-Time Buyers Make Up Only 44%

In Conclusion

If you’re looking for the right time to buy a property and take out a mortgage then keep up to-do-date with the latest mortgage trends. We hope our insights and analytics on mortgages and the housing market have helped you. If you have any questions don’t hesitate to contact us.

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