Findings from the Bank of England’s Credit Conditions Survey showed this downward trend had followed on from the latter half of 2014.
The availability of secured credit to households remained static in the three months to early March but again lenders were confident availability would gain pace in the following three months.
Jonathan Samuels, chief executive of Dragonfly Property Finance, said the slowdown in demand for homeloans signified the uncertainty prevalent in the pre-election housebuyer market.
“Many prime and super-prime buyers are sitting on their hands and want to see what the next government looks like before they commit to a purchase. This is especially the case in the capital,” said Samuels.
“That this is the most uncertain election in decades has certainly triggered more caution at this level of the market than normal. What the next government will look like is anyone’s guess.”
Samuels said Dragonfly expects demand to pick up in the summer months as mortgage rates remain low and people feel better off due to zero inflation.
In 2015 quarter one, overall spreads on secured lending to households, relative to the Bank Base Rate or the appropriate swap rate, were reported to have narrowed again with spreads continuing to narrow significantly further in Q2.
