Banks Expecting Mortgage Lending To Remain Constrained

Banks expect mortgage lending to remain unchanged and continue at recent low levels according to a Bank of England survey. However, the BOE’s Credit Conditions Survey revealed the amount of secured credit available to householders has risen in the last three months, as had lending to businesses. This loosening of the purse strings will come as welcome news to potential purchasers, who have been increasingly put off by strict lending criteria.

Banks expect mortgage lending to remain unchanged and continue at recent low levels according to a Bank of England survey. However, the BOE’s Credit Conditions Survey revealed the amount of secured credit available to householders has risen in the last three months, as had lending to businesses. This loosening of the purse strings will come as welcome news to potential purchasers, who have been increasingly put off by strict lending criteria.

The Bank said, “Demand for home loans and credit card lending among householders dipped in the past three months, as did the proportion of people defaulting on credit.” The report supports the findings of recent surveys that have revealed growing apprehension amongst consumers to take on additional debt during a period of considerable economic uncertainty.

To read the full article click here.