Mortgages

Mortgages fuel 70% of transactions since industry lockdown ended

Emma Johnson
Authored by Emma Johnson
Posted: Tuesday, April 13, 2021 - 10:13

Research by the leading mortgage broker for global high-net-worths, Enness Global Mortgages, has shown that mortgages have fuelled 70% of property transactions across Great Britain since the market reopened back in May of last year, after initial lockdown restrictions were imposed. 

Enness analysed market data on the number of mortgage financed sales as a percentage of all sales in each area of Britain between May 2020 and November 2020 (latest available data). 

While 270,785 of the 387,667 homes sold across Britain (70%) have seen the buyer backed by a mortgage, there is some regional difference. In London, 80% of all sales have come via homebuyers with a mortgage, with the East of England, West Midlands (72%), South East and East Midlands (71%) also coming in higher than the national benchmark. 

In contrast, the South West is home to the most cash homebuyers with just 64% of homebuyers purchasing via a mortgage. 

With the capital home to the largest regional percentage of mortgage backed purchases, it’s no surprise that London also accounts for the top three highest at local authority level. Lewisham is the mortgage hotspot of Britain for homebuyers with 88% of all transactions financed via the sector, with Barking and Dagenham and Waltham Forest ranking next (87%). 

Slough and Crawley are home to the highest percentage of mortgage based purchases outside of London along with Hillingdon (86%). Sutton, Thurrock (85%), Green and Merton (84%) complete the top 10.

At the other end of the spectrum, just 40% of transactions in East Lindsey have been financed by a mortgage since the market reopened in May of last year. North Norfolk (43%), Argyll and Bute (44%), Torridge, Ceredigion (45%), Scarborough (48%), Rother, South Hams and Pembrokeshire also rank with some of the lowest levels of mortgage financed transactions. 

CEO of Enness Global Mortgages, Islay Robinson, commented: 

“A lot has been made about the boost in buyer demand due to the stamp duty holiday, but it’s the continued low rates of borrowing that have really been the foundation of this heightened market activity.

While a stamp duty saving is nice, the ability to secure finance at a much lower rate of interest than historically possible has brought about a major boost to market sentiment in recent years and the impact is clear, with 70% of all transactions financed as such. 

Some lenders have begun to tighten their lending criteria and this could make it harder for those with a less stable financial background to obtain a mortgage. However, it’s unlikely to impact the actual ratio of mortgage financed buyers in relation to those purchasing with cash, particularly while the Bank of England keeps rates at sub-one per cent.”

Data sourced from the Land Registry UK House Price Index: Mortgage vs Cash Buyers (May 2020 to November 2020 - latest available data)

Table shows the number of transactions financed via cash and mortgage buyers since the market reopened in May 2020 and the percentage swing

Location

Cash Sales

Mortgage Sales

Total Sales

Cash as a % of Total

Mortgaged as a % of Total

Great Britain

116,882

270,785

387,667

30%

70%

England

94,013

223,649

317,662

30%

70%

London

6,396

25,710

32,106

20%

80%

East of England

10,616

27,137

37,753

28%

72%

West Midlands Region

8,732

22,110

30,842

28%

72%

South East

16,286

40,092

56,378

29%

71%

East Midlands

8,638

21,056

29,694

29%

71%

Yorkshire and The Humber

10,375

23,263

33,638

31%

69%

North West

13,644

30,072

43,716

31%

69%

Scotland

17,452

36,817

54,269

32%

68%

Wales

5,407

10,283

15,690

34%

66%

North East

5,687

10,359

16,046

35%

65%

South West

13,639

23,850

37,489

36%

64%

Data sourced from the Land Registry UK House Price Index: Mortgage vs Cash Buyers (May 2020 to November 2020 - latest available data)

 

 

 

 

 

 

Table shows the areas with the highest number of transactions financed via mortgaged homebuyers

Location

Cash Sales

Mortgage Sales

Total Sales

Cash as a % of Total

Mortgaged as a % of Total

Lewisham

158

1,139

1,297

12%

88%

Barking and Dagenham

76

523

599

13%

87%

Waltham Forest

139

901

1,040

14%

87%

Slough

60

382

442

14%

86%

Crawley

62

379

441

14%

86%

Hillingdon

161

966

1,127

14%

86%

Sutton

152

834

986

15%

85%

Thurrock

133

726

859

15%

85%

Greenwich

150

809

959

16%

84%

Merton

145

773

918

16%

84%

Data sourced from the Land Registry UK House Price Index: Mortgage vs Cash Buyers (May 2020 to November 2020 - latest available data)

 

 

 

 

 

 

Table shows the areas with the highest number of transactions financed via mortgaged homebuyers excluding London

Location

Cash Sales

Mortgage Sales

Total Sales

Cash as a % of Total

Mortgaged as a % of Total

Slough

60

382

442

14%

86%

Crawley

62

379

441

14.%

86%

Thurrock

133

726

859

15%

85%

Harlow

66

345

411

16%

84%

Rushmoor

83

428

511

16%

84%

Wokingham

171

878

1,049

16%

84%

Luton

132

660

792

17%

83%

Basildon

167

823

990

17%

83%

Watford

79

383

462

17%

83%

Midlothian

172

826

998

17%

83%

Data sourced from the Land Registry UK House Price Index: Mortgage vs Cash Buyers (May 2020 to November 2020 - latest available data)

 

 

 

 

 

 

Table shows the areas with the lowest number of transactions financed via mortgaged homebuyers

Location

Cash Sales

Mortgage Sales

Total Sales

Cash as a % of Total

Mortgaged as a % of Total

East Lindsey

596

399

995

60%

40%

North Norfolk

465

350

815

57%

43%

Argyll and Bute

562

438

1,000

56%

44%

Orkney Islands

105

82

187

56%

44%

Torridge

275

224

499

55%

45%

Ceredigion

221

181

402

55%

45%

Scarborough

487

456

943

52%

48%

Rother

419

411

830

50%

50%

South Hams

407

403

810

50%

50%

Pembrokeshire

333

331

664

50%

50%

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