We are deep in the clasp of winter but it could be time to look forward to the spring if you are a homeowner hoping to sell a home or a homeowner hoping to see better remortgage deals offered to you.  It is with the seasonal change in the spring that many buyers return to the housing market and according to recent reports there could be much more to get them coming back in larger numbers this year.  It appears that the Funding for Lending scheme is finally impacting the mortgage and remortgage lending markets.

According to a report from the Bank of England, which polled lenders, there are plans for there to be an increase in the number of mortgage offerings in the first quarter of the year.  With lending easing and low interest rates offered by lenders, those hesitating to buy could see it as the opportunity they have been waiting for and finally return to the housing market.  It is also a consideration that with the current drop of house prices that first time buyers will see prices at a good level to make a decision to buy.  Meanwhile the increase in mortgage lending will be good news for homeowners that have found the current remortgage deals lacking appeal.

The Bank of England’s report said, “In the three months to mid-December, lenders reported a significant increase in the amount of credit made available to the secured household and corporate sectors, and a slight increase in the availability of unsecured credit to households.

“The Funding for Lending Scheme was widely cited as contributing towards the increase in secured and corporate credit availability.

“Lenders expected a further increase in the availability of credit to all sectors over the coming quarter.

“Some lenders expected to tighten credit scoring criteria slightly, reflecting their desire to ensure that any increase in lending would adhere to [their] risk appetite,” the report added to point out that while lending could be easing it would still be a much different lending market than the one seen before the credit crisis.

In response to the survey the British Bankers' Association stated, “This encouraging survey... provides further evidence the Funding for Lending Scheme is having a positive impact and the participating banks are successfully passing on the benefits through cheaper finance.”