The Bank of England's latest Money and Credit Statistics report saw mortgage borrowing increased in May 2020, but mortgage approvals dropped by 90%.
The Bank’s data saw in May 2020 the mortgage market stayed weak compared to figures before Covid-19.
May mortgage borrowing was £1.2 billion which was higher than April’s figure, compared to the 6 months to February 2020 which was an average of £4.1 Billion.
The Bank have said the increase in borrowing was new borrowing by households and not to lower repayments.
In May 2020 mortgage approvals dropped to 9,300 which is a new all-time low and re-mortgage customer transferring to a new lender fell to 30,400 lower than February 2020s figure.
It was to be expected during the pandemic. We beleive the mortgage market will initially bounce back but will settle into a significant slowdown in any recession after covid-19.