According to research from Revolution Brokers, the forecasted total amount of lending, which is based on analysis of lending data from the Bank of England, is 17 per cent high than the total lent in 2019.
This is around £45.6bn more lent to individuals in a single year versus the pre-pandemic market.
However, the broker warned that there were “early signs” that market uncertainty of recent weeks would “leave an early mark” on the sector.
Revolution Brokers said that for those purchasing homes, the figures show total sum lent in 2022 could fall by around nine per cent to £193.9bn, which is down £35.7bn compared to last year.
Despite this, the broker said that the total sum lent to homebuyers in 2022 was on track to be 22.6 per cent up on 2019 figures.
Remortgage figures grows by nearly 30 per cent
The sum lent to remortgagors is forecast to grow by nearly 30 per cent on an annual basis, reaching £107bn in 2022. This is six per cent higher than in 2019.
Founding director of Revolution Brokers, Almas Uddin, said that, despite the turbulence of the current economic landscape, the “overall health of the mortgage sector remains strong” and was on track to see highest total level of lending since 2019.
He continued that drilling down into different types of lending showed that the “pendulum is starting to swing” away from house purchase towards remortgage.
Uddin explained: “Previously, it was new homebuyers driving market performance, with those already on the ladder having very little reason to remortgage before their initial terms had expired.
“What we’re now seeing is a decline in lending on new home purchases as a string of base rate hikes have pushed the cost of borrowing upwards. At the same time, there’s been a lift in activity from those remortgaging, keen to lock in a favourable rate before mortgage rates increase any further.”
Uddin concluded: “While we’ve certainly seen the beginning of the end where the pandemic market boom is concerned, it’s not yet clear to what extent the market will now stutter.”
