UK householders borrowed a file £11.8bn extra on mortgages than they repaid in March, in line with figures from the Financial institution of England.
This internet borrowing degree was the very best of any month since comparable knowledge started in 1993.
The market was stoked up by stamp responsibility holidays and by low mortgage charges.
These elements inspired some householders to maneuver in time to beat the tax aid deadline or to borrow extra to enhance their present property.
Mortgage borrowing indicators future demand to purchase properties, and analysts have mentioned that the UK housing market has been “on the boil” through the spring.
On Friday, the Nationwide Constructing Society mentioned the typical property worth had risen by £15,916 within the 12 months to the tip of April, to succeed in £238,831.
Gross mortgage borrowing hit £35.6bn in March as some folks tried to beat the tip of the stamp responsibility holidays, which have been then prolonged in England, Wales and Northern Eire.
Andrew Montlake, from mortgage dealer Coreco, mentioned stamp responsibility aid was having an “insane impact” on the property market.
“This mad March mortgage knowledge highlights the frenzied rush of individuals to purchase within the second half of final 12 months and save 1000’s of kilos on stamp responsibility,” he mentioned.
“However the celebrations surrounding the stamp responsibility vacation could quickly ring hole if the market cools off and folks discover their financial savings have been worn out by the premium they’ve paid for property. When borrowing is as excessive as this, it by no means tends to finish properly.”
In April, some Excessive Avenue lenders began promoting mortgages to debtors providing a deposit of simply 5% below a brand new authorities assure scheme geared toward serving to first-time consumers.
The brand new scheme might be accessible to anybody shopping for a house costing as much as £600,000, except they’re buy-to-let or second properties.
The federal government is providing a partial assure, usually of 15%, to compensate lenders if the borrower defaults on repayments.
Home hunters, notably first-time consumers, is perhaps helped of their quest to have sufficient for a deposit by households and people saving extra. The Financial institution of England mentioned deposits into accounts “remained robust in March”. Some £16.2bn extra was deposited than withdrawn, the information exhibits.
Households additionally continued to pay again greater than they borrowed on non-mortgage debt in March, the Financial institution mentioned. A internet shopper credit score compensation of £535m was recorded, together with folks’s borrowing utilizing bank cards, private loans and overdrafts.