The Bank of England has reported that individuals borrowed an additional £5.2 billion secured on their homes in January.

This is compared to the monthly average of £4.0 billion in the six months to February 2020.

In January, the number of house price approvals was 99,000. While this was a little lower than in December (102,800) it was well above the monthly average in the six months to February 2020 (67,900). Approvals for remortgage (which only capture remortgaging with a different lender) fell slightly to 32,400.

The effective interest rates on newly drawn mortgages fell five basis points to 1.85%. That is in line with the rate in January 2020, and compares with a series low of 1.72% in August 2020. The rate on the outstanding stock of mortgages fell to 2.09%, a new series low.

David Whittaker, CEO of Keystone Property Finance, said: “Today’s statistics show that the housing market remained resilient as the new year kicked off, with demand for property continuing to rise as people take advantage of low interest rates and the stamp duty holiday. However, it’s clear that mortgage transactions are beginning to slow as the impact of the third national lockdown on consumer confidence and uncertainty about the future of the stamp duty holiday takes hold.

“In addition, while demand for property has remained strong, data shows that the supply of new property has decreased since the beginning of the year. As well as navigating this unprecedented market, buy-to-let borrowers have an added challenge of dealing with recent and upcoming regulatory changes.

“As such, the value of advice for landlords cannot be understated. The role of mortgage brokers has never been more important in helping landlords understand this shifting landscape and find the right mortgage for them and their individual circumstances.”