Mortgage demand through the roof following stamp duty holiday extension

UK, 29 March 2021: Mortgage search volumes have increased by 14.6% week-on-week since the Budget on 3 March 2021 [1], according to new data from Experian.

Mortgage enquiries on Experian’s mortgage comparison service also increased by 13.5% in the three weeks following the Budget, as searches progressed to formal applications [2]. Of these, house purchase leads make up a higher proportion of searches than remortgages, further demonstrating the impact of the stamp duty holiday extension.

When analysing data over a four-week period, mortgage applications rose the most in the week commencing 7 March 2021, up 8% over the previous week. Growth is being fuelled by those under 30, as mortgage applications increased 4.2% amongst this age group in the first two weeks of March 2021, when compared with the last two weeks of February 2021 [3]. 

Clive Lawson, Managing Director of Experian Consumer Services, said: “Interest in home ownership continues to rise as the stamp duty holiday extension allows consumers to put down larger deposits. The return of Government-backed 95% mortgages could also help more people realise the dream of buying a home, especially young homebuyers.

“With mortgage options continuing to steadily increase, it’s important to use a broker and eligibility services, especially for higher loan-to-value ratios, so you get the product that’s best for you. People with high scores tend to be able to access the best mortgage rates, so it’s worth taking some time to make sure your credit score is in the best possible shape too”.  

Moving up a credit score band can have a significant impact on application approval and mortgage savings. For example, if an individual improves their Experian score band from Very Poor to Fair, Experian data suggests they could save an average of £1032 per year on a £150,000 mortgage loan with a 20 year-term [4], as they would likely be paying a lower interest rate.

-ENDS-

Notes to editors

[1] This is based on an analysis of mortgage searches, comparing volumes for the weeks since the Budget when it was officially announced that the stamp duty holiday was to be extended (3 March 2021). Mortgage searches are captured on Experian’s comparison service but don’t always lead to an enquiry.

[2] This is based on an analysis of mortgage enquiries, comparing volumes for the three weeks since the Budget (3 March – 22 March 2021). Mortgage enquiries are defined as mortgage searches via Experian’s comparison service that then leads to an enquiry with our partner broker L&C.

[3] Analysis of Credit Applications Previous Searches (CAPS) made via the Experian bureau was compared to the last two weeks of February to the last two weeks of March. These reference hard search comparisons.

[4] Saving is based on average estimated APR differences among Experian customers who have taken a mortgage between April 2020 and August 2020. The analysis, using a sample of 240k mortgages, suggests an Experian customer with a Very Poor score on average receives an APR of 3.05% and would repay £200,557 on a £150,000 mortgage, a payment of £836 per month. An Experian customer with a Fair score on average receives a 1.87% APR and would repay £179,910, a payment of £750 per month. This is an £86 monthly saving, totaling £1,032 per year.

Experian Credit Score Bands 

Very Poor              0 - 560

Poor                      561 – 720

Fair                        721 - 880

Good                     881 - 960

Excellent               961 – 999

About Experian

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