The Mortgage Industry

What the Bank of England's latest Money and Credit Update reveals about the health of the mortgage market

November 29, 2021

Last week the Bank of England published its latest Money and Credit Update, but what do the findings tell us about the state of the mortgage market? We spoke to our CEO, Conor Murphy, to delve into what we can learn from the latest release. Take a look below.

An overview of the findings

· Consumers borrowed a whopping £9.5 billion (net) in mortgage debt in September, the highest figure since June 2021.

· 72,600 mortgage applications were approved in September, a slight dip from 74,200 in August.

· In September, individuals borrowed an additional £0.2 billion (net) in consumer credit, while the effective rate on new personal loans rose to 6.02%. This is the highest rate since March 2020. · Take a look at the release in full, here.

Conor Murphy, CEO, Smartr365 commented:

“Though today’s findings were to be expected, given that September was the culmination one of the busiest periods ever witnessed by the market, they are not to be taken for granted. The stamp duty tax break has helped countless borrowers to access affordable

deals and I would like to see permanent changes to the stamp duty thresholds, alongside an increase to loan-to-income ratios and the availability of higher loan-to-value products, to help more first-time buyers onto the property ladder.

“Though buyers are no longer motivated by the tax savings on offer in the stamp duty holiday, we can expect both mortgage approvals and net mortgage borrowing to remain strong throughout Q4 and 2022, given the enduring ‘race for space’ and undersupply of UK housing.

“However, with various factors putting pressure on an interest rate increase and the Stamp Duty holiday long-gone, it is now time to plan the next era of the market. Investing in mortgage tech will be crucial to brokers’ success regardless of the next step taken by the industry. Powerful sourcing tools, strong CRM systems and digital ID verification are among the key tools that leave brokers with more capacity to focus on what truly matters – providing the best outcomes for clients, whatever the market conditions.” There is no better time to invest in an efficiency gain than today. Book your demo today to see how we can help transform the way that you conduct business.