Andrew Montlake (pictured), managing director of mortgage broker Coreco, has warned that extreme borrowing “never tends to end well” as UK mortgage borrowing hits record levels.
The Bank of England has issued its latest mortgage approval figures which revealed that mortgage borrowing in March was at the highest level since it began issuing its mortgage approval series in 1993.
A total of £11.8bn was borrowed with 82,735 mortgages approved during the month.
BoE: Mortgage borrowing up by record £11.8bn in March
Montlake said: “The strongest level of mortgage borrowing since records began shows the insane effect of the stamp duty holiday on the property market.
“This mad March mortgage data highlights the frenzied rush of people to buy in the second half of last year and save thousands of pounds on stamp duty.
“But the celebrations surrounding the stamp duty holiday may soon ring hollow if the market cools off and people find their savings have been wiped out by the premium they have paid for property.
“When borrowing is as extreme as this, it never tends to end well.”