Lenders have reported decreasing demand for secured lending for both house purchase and remortgaging in the second quarter of 2020, but this demand is expected to increase in Q3, according to new research from the Bank of England (BoE).
The bank’s Credit Conditions Survey 2020 Q2 indicted that lenders had also reported the availability of unsecured credit to households decreased in the second quarter of the year.
The survey, conducted between 1 and 19 June, revealed this availability of unsecured credit to households is also expected to decrease further in the third quarter of 2020.
Interpreting the BoE’s data, Coreco managing director, Andrew Montlake, commented: “With lenders expecting demand for mortgages to rise in the third quarter and supply to fall, the property market clearly has some significant challenges ahead.
“Job losses, as we saw on Thursday, are rising and so lenders are understandably nervous, especially at higher loan to values. These nerves are reflected in the widening of spreads. There is a lot of pent-up demand right now but lenders are tightening their criteria and generally being more cautious, with many expecting default rates to rise.
“There are still lenders out there who are keen to get money into the market but finding them can be a challenge in itself. With lender criteria and appetites changing almost by the day, the role of independent brokers has never been more important.”
Latest News
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories