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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.

Mortgages for Business – MPU

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.”

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