MORTGAGE DEMAND EXPECTED TO SLOW

July 14, 2016 by in category Mortgage News with 0 and 0

According to the Bank of England’s latest Credit Conditions Review, lenders expect consumer demand for mortgages to slow
Many of the UK’s major lenders anticipate that demand for mortgages for house purchase will reduce in the near term.
Discussions with Santander, Barclays, HSBC, Lloyds, Nationwide, and RBS, showed that mortgage appetite among consumers rose significantly in the three months to mid-June, shortly before the UK’s vote on membership of the European Union took place

After the market saw the introduction of a 3% Stamp Duty premium on additional property purchases from 1 April, unsurprisingly, buy-to-let lending fell slightly in Q2, .

Largely due to the changes in the buy-to-let market, which saw investors rush to beat the Stamp Duty deadline, the review reported that mortgage lending has been volatile in recent months, .

During the second quarter of 2016, as with the availability of secured credit,
firms reported that credit scoring criteria for mortgage lending was slightly tighter. The cost of mortgages remained relatively the same, however, with rates on a range of two-year fixed rates reported to have remained broadly flat and close to record lows.

The availability of credit is expected to remain broadly the same, with rates likely to stay consistent with this, while lenders expected demand for mortgages to shrink slightly.

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