Mortgage News
Mortgage lending falls in Q3
High street banks reduced the supply of mortgages and other credit to households during Q2, according to the latest quarterly credit conditions survey from the Bank of England (BoE).
This reversed an increase in mortgage availability seen in the previous quarter. A small net balance of lenders reduced the amount of secured lending to households in the three months to mid-September 2009.
The contraction in availability came despite banks pledging to increase lending. Some increase in overall credit availability was expected over the next three months.
Lenders blamed the reduction on a deterioration in the cost and availability of funds, although they expect mortgage lending to improve in the final part of the year.
Demand for secured lending for house purchase was reported to have increased, but lenders expected it to decline somewhat over the next three months. Demand for secured lending for remortgaging had stabilised, with increases anticipated over the next quarter.
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