BoE: Mortgage availability down


BoE: Mortgage availability down
Mortgage borrowing was harder over the last three months as banks made securing a loan harder, according to new Bank of England figures.

The UK central bank's credit condition survey revealed availability of secured credit and mortgages to households was "reduced materially" over the last three months.

Banks and building societies were found to be "reducing their risk appetite and targeting a slightly lower market share".

Borrowing was made tougher through lenders tightening criteria and cutting the amounts that could be borrowed against the value of a property.

The survey of lending also points to mortgage borrowing becoming tougher in the coming quarter – but demand for remortgage products will increase as over a million homeowners will come to the end of their fixed rate deals and find interest rates much higher.

"The Bank of England credit conditions survey for the fourth quarter indicated lending to households had tightened and become more expensive," said Howard Archer, chief UK economist at analysts Global Insight.

Furthermore, the availability of credit for households was expected to diminish further over the first quarter of 2008, which will add to the growing downward pressures on consumer spending.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure