Improvement in Mortgage Availability Expected
The Bank of England's Credit Conditions Survey revealed that lenders expect the availability of mortgages to improve in Q4, following an increase in Q3.
The survey found that changing risk appetite had the biggest influence on the availability of secured credit to households in Q3, with a lender response score of 18.8%. Mortgage availability improved for all borrowers, with scores of 28.1% and 27% for lending at 75% loan to value (LTV) or less and high LTVs, respectively.
- Lenders expect mortgage availability to stay steady and positive in Q4, with readings of 26% and 25.5% respectively.
- Lenders are willing to lend to borrowers with less than 10% equity in Q3 and will continue to be open to this demand in Q4.
Lenders remain keen to lend and have the funds available to do so. The past few months have seen them ease affordability criteria, increasing the borrowing potential of many mortgage applicants. - Mark Harris, chief executive of SPF Private Clients
Author's summary: Mortgage availability is expected to improve in Q4.