Banks Lending More Mortgages

UK Lenders are predicting mortgage availability to increase in the next few months as the outlook for the economy improves.

The Bank of England’s Trends in Lending report revealed that projection comes after availability dipped in the third quarter of the year.

New mortgages rates rose in August to an average of 4.3% up from 4.2% in July.

Credit card borrowing and loans continue.

Lenders have stated that there has been no increase in demand for car loans in spite of the rise in car sales on the back of the scrappage scheme.

Those with a less than pristine credit history may also find it harder to get and unsecured loan as credit scoring criteria gets tighter over the coming months.


Recently released data shows a split between mortgages for property purchases and remortgages.

Lending to home buyers rose through September while remortgaging continues to remain weak.

The Council of Mortgage Lenders (CML) stated that their September report continues to show a ‘two speed’ mortgage market.

The CML also said that ‘funding conditions remain challenging, despite encouraging signs of a slight thaw in wholesale funding markets.’

Overall the the most likely scenario confirms our own assessment of market prospects which indicate ‘a slow and long drawn out recovery’.

The FSA have also proposed, earlier this week, a tightening up of mortgage regulations.

Under the proposal lenders would need to verify each borrowers income before agreeing on a loan.

Repayments of existing loans for businesses in August also outstripped new lending although this has relaxed compared to the July.

Unofficial speculation that there is more credit available to businesses is consistent, but companies are having to repay through higher spreads with larger fees.

UK House Prices

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