Property Peak: June 29th marked busiest day for mortgage completions so far in 2021
Mortgage completions soared to a crescendo in the final days of the first phase of the stamp duty holiday, according to data from Barclays Mortgages.
It also recorded a 36 per cent increase in completion volumes in week commencing 19th June, the final full week of the tax break, compared to the busiest week in Q1, and a peak of over 2,000 mortgage completions in a single day on 29th June.
First time buyer completions were a key driving force behind this peak, with a volume increase of 79 per cent from January to June, compared to the second half of 2020. But it was not just first time homeowners that Barclays helped to purchase their dream property; completion volumes for home movers also saw a 76 per cent uplift within the same time frame.
Lee Chiswell, Head of Barclays Mortgages, says: “Despite the ongoing challenges presented by moving house in the midst of a global pandemic, people are still getting on and moving up the property ladder. The stimulation provided by initiatives like the government’s stamp duty holiday has not only helped a higher proportion of first time buyers take their first step onto the property ladder, but also enabled home movers to make their next purchase.”
Despite 29th June, a Tuesday, clinching the title for highest number of completions this year so far, the data from Barclays Mortgages revealed that Thursdays are more typically the busiest day for completions. The average Thursday in 2021 so far saw 54 per cent more completions than the next busiest day for completions, which is a Wednesday.
With this boom in completions, it is unsurprising that the time from application to completion has increased by 9 days across the UK, from an average of 58 days in the second half of 2020 to 67 days in 2021 so far. Time to completion for house purchases sits slightly above this average figure – which takes into account the typically less time-intensive process of remortgaging or securing a further advance – sitting at 75 days for first time buyers and 78 days for home movers.
But it’s movers in Scotland who complete the quickest, doing so within an average of just 50 days from applying for their mortgage, while those in the South West, East Midlands, East Anglia and Yorkshire max out at an average of 70 days.
As the volume of mortgage completions are on the rise, the average price paid for a property in the first half of 2021 hit £419,188. Greater London was revealed to have the highest property price in the UK with buyers paying on average £790,248 for a new pad in the capital, while the price paid in Northern Ireland crept below the £200,000 threshold.
Semi-detached properties were found to make up 30% of all completions, while detached properties (28 per cent), mid terraced homes (16 per cent) and flats on the first floor and above (11 per cent) were also favoured.
Barclays Mortgages has a range of mortgage products available to help first time buyers and home movers when purchasing their property. It also provides products for existing homeowners when re-mortgaging their property.