Bank of England: Mortgage lending to increase

Lenders are anticipating a significant increase in mortgage lending, the latest Bank of England Credit Conditions Survey has found.

Respondents to the survey said that the Funding for Lending Scheme has been an important driver of the recent upturn and that they expected it to continue.

Demand for mortgage lending increased over the quarter and was spread across prime and Buy-to-let lending.

There was also an increase in demand for re-mortgaging.

Peter Lawrence at Lawrence Rand said: “Success breeds confidence when it comes to the housing market, and today’s Credit Conditions Survey suggests the bright start achieved will continue into the second half of the year.

“More consumers are sensing an opportunity to move up the property ladder with demand for prime lending now outstripping demand for buy-to-let.

“The availability of lending finance to people with less equity or limited deposits has visibly improved and this is a key factor driving the rebirth of the first time buyer market.

“With historically low mortgage rates now available, anyone looking to buy would be advised to avoid the temptation to switch off over the summer and instead seize the chance to make a move.”