The UK mortgage market is showing signs of growth, with Santander UK reporting a 31% increase in mortgage loan volume in the first quarter of 2022. This marks the highest level of mortgage loan volume since the financial crisis of 2008.
The increase in mortgage loan volume is largely attributed to the UK government’s Help to Buy scheme, which has been in place since 2013. The scheme has provided financial assistance to first-time buyers and those looking to move up the property ladder. This has enabled more people to access mortgages and take advantage of low interest rates.
Santander UK’s Chief Executive, Nathan Bostock, commented on the figures: “The Help to Buy scheme has been a major driver of growth in the UK mortgage market, and we are delighted to see that it is continuing to help people get on the property ladder. We are also pleased to see that our own mortgage loan volumes have increased by 31%, which is an encouraging sign for the future of the UK housing market.”
The figures from Santander UK are part of a wider trend of growth in the UK mortgage market. The Bank of England reported that mortgage approvals for house purchases rose to a record high in March 2021, with over 100,000 approvals. This was driven by a combination of low interest rates, government incentives and an increase in consumer confidence.
The rise in mortgage loan volume is also being driven by an increase in demand for housing. The UK population is growing at its fastest rate since 1939, and this is putting pressure on the housing market. This has led to an increase in house prices, which is making it more difficult for people to buy a home without taking out a mortgage.
Overall, the figures from Santander UK show that the UK mortgage market is continuing to grow. This is good news for both first-time buyers and those looking to move up the property ladder, as it means that more people can access mortgages and take advantage of low interest rates. With the government’s Help to Buy scheme continuing to provide financial assistance, it looks like this trend will continue into the future.