The number of UK mortgage approvals slumped by 71.76% between March and April, according to data gathered by Buyshares.co.uk.
The investment expert said the economic outcomes of coronavirus had resulted in the biggest approval slump in 27 years.
The data revealed that in March, mortgage approvals stood at 56,160 and later dropped to 15,850 for April. The highest level of mortgage approvals in the UK during 2020 was recorded in February at 73,550, which was an increase of 3.75% from January’s figure of 70,890.
Between April 2019 and April 2020, the figures showed that mortgage approvals had dropped by 76.07%, having stood at 66,260 in April last year. Between April and December in 2019, the data suggested that approvals remained constant with an average of 65,960.
Buyshares.co.uk also indicated that it overviewed mortgage approvals in the UK between January 1987 and April 2020. During the period, the approvals registered a slump of 86.61%, the highest in history.
In January 1987, the data showed that mortgage approvals sat at 118,400. The highest mortgage approvals were recorded in April 1988 at 151,500 before embarking on a downward trajectory to hit a low of 62,600 in December 1992. Buyshares.co.uk said another notable slump was recorded amid the financial crisis in February 2009, at 27,000.
Over the last ten years, the figures indicated that the highest level UK mortgage approvals have reached was in March 2014, at 76,950.
The Buyshares.co.uk research report said: “It is worth mentioning that although the coronavirus significantly impacts the old health-wise, young people who are first-time employees and lowly paid have been impacted significantly financially. In this case, first-time home buyers who are mostly young people are set to reduce.”
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