Bank of England Money & Credit report

ended 29. November 2021

This morning at 09:30 the Bank of England is publishing its October Money and Credit report. It will cover the number of mortgage approvals secured in October and also the amount of credit (personal loans and credit cards) people took out. Please answer the questions below that are relevant to you.

  • How have mortgage approvals been faring in the Autumn overall? Is the market still busy?
  • Who or what is driving the mortgage market right now, e.g. FTBs, remos, landlords, etc?
  • In your experience, have consumers been taking on too much debt?
  • Are more people now struggling to meet their loan repayments and cover their credit card bills?

As ever, if you're a Premium user, your response will be edited by a journalist.

5 responses from the Newspage community

"The Stamp Duty holiday is over and interest rates are tipped to rise, but guess what? People still want to live in homes they own. Most of my clients are first-time buyers and October and November have been two of my busiest months on record. What's encouraging is that first-time buyers have much larger deposits than they did 18 months ago as they've been able to save at the same time because their ability to spend on holidays and other leisure activities was severely reduced. This is allowing them to get better mortgage products than they typically would as they are able to put down more as a deposit. And even if rates do rise, prospective borrowers know that any increase will be negligible, at least in the short- to medium term and of course they can fix at today's rates for 2, 3, 5 years, or longer."
"Mortgage approvals are still being offered left, right and centre, with lenders offering products across the full range of deposit sizes and equity levels. The market is being driven primarily by first-time buyers, as Stamp Duty holiday or not, it's in many people's DNA to want to own their property rather than rent. Many existing homeowners are looking to either raise capital to improve their homes or are locking into longer term deals while interest rates are low. There has been a slight cool down in activity compared to the first half of the year but the market is still very busy overall."
"The mortgage market continues to be very buoyant, with some great deals available, despite the fact that many rates have risen slightly over the past few weeks. My main source of new enquiries currently is remortgage clients, with a noticeable slowdown in calls from home movers and first-time buyers, but that is expected as we move towards Christmas. In terms of non-mortgage debt, most clients I see have a credit card and a personal loan, or maybe a PCP on a car. However, it is rare that this is not proportionate to their income and even rarer if they are struggling with it. Overall, people do not seem massively over-leveraged with debt."
"With the winter nights drawing in, it's no surprise people have been less inclined to trudge around in the dark house hunting and making mortgage offers on their ideal home. People start to think about Christmas dinner and warm socks rather than their next property move. As such, at this time of year the market normally sees a slow down from October, which carries on for a few months to the New Year. At this time of the year, mortgage activity is largely dominated by remortgages as borrowers use the downtime time to 'shop around' and sort out their finances."
"While the housing market inevitably cooled after the Stamp Duty holiday, the remortgage market has continued apace with borrowers looking to take advantage of the stupendously low mortgage rates currently on offer. With the threat of an interest rate rise looming due to spiralling inflation, borrowers are locking themselves into low rates in an effort to protect themselves financially."