UK lenders expect mortgage supply and demand to fall in Q3: BoE survey
Reuters
Published Jul 13, 2023 10:15
LONDON (Reuters) - British lenders reported the biggest increase in mortgage defaults since 2009 in recent months and they expect to curb the availability of home loans and unsecured borrowing, a Bank of England survey showed on Thursday.
The gauge for reported mortgage defaults in the BoE's quarterly Credit Conditions Survey rose in the second quarter to 30.9 from 14.0 in the first quarter - the highest reading since mid-2009 when the same indicator topped 60.
"Lenders reported that losses and default rates on secured loans to households increased in Q2, and were expected to increase in Q3," the BoE said.
The survey also showed lenders expect demand for mortgages to fall sharply in the third quarter.
Most economists expect activity in Britain's housing market to cool as consecutive interest rate rises since late 2021 increasingly feed through to mortgage costs.
A survey on Thursday from the Royal Institution of Chartered Surveyors showed a big decrease in new buyer enquiries.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.