Broker mortgages soar 40% in just one month

Intermediary mortgage sales exceeded all expectations in February to hit the highest level since the 2008 market crash.

Residential and buy-to-let sales totalled £16.6 billion, an increase of 39% on January’s £4.7 billion.

Buy-to-let sales rocketed by 40.3% or £1.2 billion on January while residential sales were up 38.6% or £3.5 billion.

The year-on-year increase for buy-to-let and residential sales stood at 52.9% and 30.4% respectively, according to analysis of the intermediary market by Equifax Touchstone.

Sales figures jumped in every regional area, with London taking the lead, rising by 50.6% on January.

The North West, Scotland and Northern Ireland all increased more than 40% and all other regions grew in excess of 30%.

The data covers 92% of the intermediated lending market also showed that the average value of a residential mortgage in February was £192,568, up from £177,067 year-on-year.

For buy-to-let the average loan was £157,491, up from £151,014.

Iain Hill, relationship manager, Equifax Touchstone, said: “With the impending changes in stamp duty on buy-to-let property, we expected buy-to-let sales to jump in February.

“However, the residential figures have taken many market participants by surprise, also rising sharply and resulting in the highest month for mortgage sales since the 2008 market crash.

“We expect sales volumes to remain strong in March, and it will be interesting to see if the market can cope with the inevitable pressures that come with the increased demand.”