On Thursday morning @ 09:30, the Bank of England published its latest Credit Conditions Survey for Q1 2021. Key figures on the mortgages front were:
- Lenders said demand for mortgages and remortgages decreased in the three months to the end of February 2021, but expected it to increase in the three months to the end of May.
Key takeaway: Lenders clearly believed the demand for mortgages decreased because many would-be borrowers felt they had missed out on the Stamp Duty holiday and so didn't seek to apply for a mortgage. But lenders expect demand to pick up as the economy reopens and people increasingly “come out of hibernation”.
- Lenders reported that the availability of mortgages increased in the three months to the end of February. Lenders also expected the availability of mortgages to increase over the three months to the end of May.
Key takeaway: Lenders have become a lot more bullish in recent months, especially at higher loan-to-values, which is a boost for the property market and good news for first-time buyers. Lenders also expect to be more proactive in the months ahead.
A selection of views from Newspage experts are below.