Mortgages fuel 70% of transactions since industry lockdown ended

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%