View more on these topics

BoE survey hints at lower mortgage demand in Q1

The Bank of England’s quarterly credit conditions survey, in which lenders answer a series of questions regarding business in the last three and next three months, describes falling demand for mortgage loans in the first part of next year.

When asked if demand for secured lending for house purchase changed in Q4 2018, respondents’ answers resulted in a net balance of -24.2 per cent, indicating weak demand. When asked the same question regarding Q1 2019, this figure comes to a slightly more positive -17.5 per cent.

In response to the question: ‘how has demand for secured lending for remortgaging from households changed?’, the net balance for the last three months was recorded at 7.9 per cent. However, when asked the same question for the next three months, this figure fell to -6.9 per cent.

A decade ago, these respective figures read as a more dramatic -75.3 per cent and -51 per cent.

Earlier today, UK Finance figures showed that homeowner remortgages increased by 1.3 per cent on an annual basis in November, although the value remained the same, at £6.8bn.

The BoE survey also shows that lenders plan to target first-time buyers. In response to the question of whether they have become more willing to lend to borrowers with housing equity less than 10 per cent of the value of their home, the net balance of those who answered positively regarding Q4 2018 stood at -1.0 per cent.

When looking towards the next three months, however, this figure moves into positive territory – 5.3 per cent – indicating that lenders may loosen credit terms.


Mortgage lending stable in November: BoE

Data from the latest report from the Bank of England, shows that the mortgage market’s stability seen since 2016 continued into November 2018. Households borrowed £3.5bn against their homes back in November, slightly lower than the previous month’s total of £4.1bn. This is in line with the average amount since 2016, £3.6bn per month, the […]


Product fees wipe out landlords’ remortgaging savings: Property Master

Landlords switching to competitive fixed rate buy-to-let mortgages could find the savings they make wiped out by hefty product fees, according to Property Master. The online broker’s Mortgage Tracker report has been compiled every month since January 2018, but this is the first month it has calculated average product fees. The research shows these can range […]

Navigating volatility

The making of any fund can be seen in how it responds to crises and opportunities. In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham outlines how the Royal London Global Multi Asset Portfolios or GMAPs navigated through Brexit and the US election cycle. He also highlights the importance […]


News and expert analysis straight to your inbox

Sign up