The UK mortgage market has seen a surge in activity in January, with searches reaching a record high. According to Twenty7tec, a leading provider of mortgage technology, the number of searches for mortgages in the first month of 2021 was up by a staggering 60% compared to the same period last year.
This surge in activity is likely due to a combination of factors. Firstly, the stamp duty holiday announced by the government in July 2020 has encouraged many people to take advantage of the savings available and move house. Secondly, the low interest rates on offer have made mortgages more affordable for many people. Finally, the vaccine rollout has given people more confidence to make long-term financial decisions.
The increase in mortgage searches has been particularly pronounced in the buy-to-let market. Buy-to-let mortgages are up by a staggering 77% compared to January 2020, with many landlords taking advantage of the stamp duty holiday and low interest rates to expand their property portfolios.
The surge in mortgage searches is good news for the UK housing market, as it suggests that people are feeling more confident about making long-term financial decisions. However, it is important to remember that the stamp duty holiday is due to end in March 2021, and that interest rates may rise in the future. Therefore, it is important to seek professional advice before making any long-term financial decisions.
Overall, the increase in mortgage searches in January is a positive sign for the UK housing market. The stamp duty holiday and low interest rates have encouraged many people to take advantage of the savings available and move house. However, it is important to remember that these incentives will not last forever, and that it is important to seek professional advice before making any long-term financial decisions.