Bank of England Credit Conditions - Q2

ended 15. July 2021

Tomorrow (Thursday) morning at 09:30 the Bank of England is publishing its Q2 Credit Conditions Survey (Q2 being the three months to the end of May). Masochists can read the Q1 report here over a peppermint tea or pint of scrumpy.

Tomorrow's report will tell us whether banks increased their lending to borrowers and businesses in the three months to the end of May, or reduced it. And also what their appetite for mortgage/business lending is expected to be between now and the end of August.

The report also identifies demand among borrowers for mortgages and unsecured credit between March and May 2021 (and likewise, businesses for loans). So over to you! Just focus on your area of expertise, e.g. mortgages, business finance, unsecured credit.

No need for an essay - keep it short and punchy! Soundbites, not War and Peace….

If you're a Premium user, your response will be edited to ensure it is as strong as possible and grammatically tight. Premium alert_responses also go towards the top of the viewsWire.

4 responses from the Newspage community

"From a mortgage perspective, mortgage supply in the second quarter was insane. It also comes as no surprise that banks expect supply to increase further in the third quarter, as the price war picks up. Demand was equally rampant during the second quarter, as the Stamp Duty holiday saw Brits rush to save thousands of pounds in tax. "The worry is rising inflation, as that could see interest rates go up, which puts a stick in the spokes of the whole economy. But the Bank of England knows that a rate rise would be a dangerous thing right now."
"Due to the impact of the Stamp Duty holiday, it's no surprise mortgage lending figures increased during the second quarter. Banks have become increasingly bullish since the beginning of the year. "It's no surprise that banks also expect mortgage lending to continue to grow until the end of August, as competition is intense. "The most pressing question is what will happen to demand and supply once the Stamp Duty holiday is completely over, and the furlough scheme has come to an end? That's when we could see the current supply/demand dynamic shift."
"That banks are expecting more defaults in the months ahead should serve as a shot across the bows to borrowers. "The housing market has boomed this year and we have submitted more mortgage applications than ever before but there is a huge amount of uncertainty in the economy and people need to be vigilant in terms of what they should borrow."
"The property market has been phenomenally busy since last July, when the Stamp Duty holiday was first announced, so it's no surprise that lending levels have been robust. "With the main Stamp Duty relief now over, demand has certainly reduced and is likely to cool in the months ahead. Interestingly there are still a lot of people looking to purchase a property at the higher end of the market. "With the mortgage price war in full flow, now is the time when you can secure a great rate."