01638 576478

Mortgage availability shows ‘significant’ improvement, says Bank of England

The Bank of England said overall availability of secured mortgage credit to households increased significantly in the quarter to September, in contrast to previous expectations for little change. #property #mortgages     http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9568420/Mortgage-availability-shows-significant-improvement-says-Bank-of-England.html



However, most of the products were aimed at people with big deposits and the Bank noted that credit-scoring criteria tightened over the quarter. The overall availability of credit to the corporate sector was reported to have remained unchanged for small, medium and large companies.

The Bank of England and the Treasury’s £80 billion Funding for Lending scheme was fired into action at the beginning of last month to unclog the flow of mortgage credit to households and businesses.

Yesterday, the Bank said it had seen an “early impact” of its scheme as mortgage borrowing rates begin to come down, but warned it might not be able to prevent total lending from falling over the next 18 months as wider global economic troubles continue to weigh on markets. In its credit conditions survey today, the Bank said mortgage availability is expected to increase further over the next three months, including to borrowers spread accross mortgage loan to value ratios.

Vicky Redwood, chief UK economist for Capital Economics, said: “Overall, the outlook for mortgage bank lending is better than it was a few months ago, helped by the latest policy initiatives. Nonetheless, we think it will be a long and slow process to get credit flowing freely around the economy again.”

Did you like this? Share it:
Need a wordpress plugin menu? Learn about autoblogging : try it at no cost

Tags: , , ,