UK mortgage lending in the first quarter of this year will remain restricted, according to the latest Credit Conditions Survey by the Bank of England.
Many lenders have already revised their expectations on the household income of potential borrowers and revealed that they will impose stricter lending criteria, which will lead to a decline in mortgage approvals.
The Bank of England said that demand for home loans is expected to fall, as it was already constrained in the last quarter of the previous year, with most UK borrowers unable to provide the deposits required by lenders.
Commenting on the findings, experts at the Bank of England, said, “Factors such as the economic outlook and tighter wholesale funding conditions were expected to impact negatively on credit availability…developments in the Euro area and their impact on banks’ funding conditions would be a key determinant of credit availability over the coming quarter.”
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