Mortgage Availability to Improve
Lenders have reported an increase in mortgage availability in Q3, with expectations of further improvement in Q4, according to the Bank of England's Credit Conditions Survey.
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% for lending at 75% loan to value (LTV) or less.
- High LTVs saw an improvement of 27%.
“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 expect to maintain a steady and positive approach in Q4, with readings of 26% and 25.5% for low and high LTVs, respectively.
Author's summary: Mortgage availability is expected to improve in Q4.