Swindon-based accountants and business advisors reports that lending for house purchases fell sharply in the second quarter of 2020 following the suspension of the housing market due to the coronavirus lockdown, according to UK Finance data.

The report showed that mortgage refinancing decreased but held up better than purchase activity, with a significant shift towards internal product transfers. Whilst lenders have maintained a cautious approach to underwriting in unprecedented times, higher loan-to-value lending is still taking place and contracted less than the wider market.

Forward-looking data points to a strong initial recovery in early Q3, however, as the backlog of delayed sales complete.