You are here: Home - News -

Demand for purchase mortgages forecast to fall in early 2019 – Bank of England

  • 17/01/2019
  • 0
Demand for purchase mortgages forecast to fall in early 2019 – Bank of England
Demand for mortgages to purchase homes fell “significantly” in the final three months of 2018 and is expected to fall again at the start of 2019, according to the Bank of England credit conditions survey.


Lenders reported that demand from borrowers had dropped to levels not seen since the start of 2018, and the outlook was also low.

Remortgage demand was said to have increased in the final quarter of last year but is expected to dip over the first three months of 2019.

The availability of mortgages was at its lowest level in more than two years in the fourth quarter, according to the survey.

The main factor contributing to the decline is the changing economic outlook, lenders reported.

However, availability is expected to pick-up in the first three months of this year.

Lenders overall said they would be more wiling to lend to borrowers with less than 10 per cent equity in the property over the coming quarter.

Loan to value ratios are expected to increase in the coming months, as loan to income ratios remain little changed.

Spreads on lending to households relative to the bank rate were reported to have narrowed significantly at the end of 2018, a trend expected to continue in the first quarter of 2019.

There are 0 Comment(s)

You may also be interested in

Read previous post:
Sesame launches adviser apprenticeship scheme

Sesame Bankhall Group (SBG) has launched a new apprenticeship scheme in partnership with Simply Academy.