Mortgage Availability to Improve
The Bank of England's Credit Conditions Survey found that lenders have increased mortgage availability in Q3 and expect further improvement in Q4.
- Changing risk appetite had the biggest influence on secured credit availability to households in Q3, with a lender response score of 18.8%.
- Mortgage availability improved for all borrowers, with scores of 28.1% for lending at 75% loan to value (LTV) or less and 27% for high LTVs.
- Lenders expect steady and positive availability in Q4, with readings of 26% and 25.5% respectively.
“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
Lenders are willing to lend to borrowers with less than 10% equity and will continue to be open to this demand in Q4.
Author's summary: Mortgage availability is expected to improve in Q4.