Mortgage availability predicted to increase

The supply of mortgage finance in the UK is set to go up in the coming months, lenders have said.

Such a prediction emerged from the Bank of England’s quarterly Credit Conditions Survey, which said the fourth quarter will see the credit crunch ease when it comes to secured borrowing.

Other predictions were that demand for mortgages to buy homes will drop, but there will be a rise in the number of people wanting remortgages.

The Council of Mortgage Lenders (CML) welcomed the news about the easing of the credit situation.

It said: “There have been recent signs of an improvement in wholesale funding market conditions and the survey records a notable pick-up in lenders’ expectations that this will continue in the next three months.”

Another trend the CML was pleased to see was a drop in mortgage default rates in the third quarter, noting that this reverses the constant trend of the last two years.

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