Bank of England Reports Slowdown in Mortgage Market
As UK lending has seen a small increase, Bank of England maintains conditions are still tight with no change in the 12 months growth rate. This is a suggestion the mortgage market is slowing down.
So far, the six month average is 50,036 per month. In June that figure was 47,643 or 1,818 lower than in May. This represents an obvious downward move. The remortgage numbers dropped in June to 24,949, also coming lower than the six month average of 26,366. The Council of Mortgage Lenders (CML) confirms the data from June means a subdued mortgage market will continue into the fall of this year. CML economist Paul Sauter said: "Remortgaging activity remains at exceptionally subdued levels. This low demand is being driven both by the lack of demand among those existing borrowers enjoying low rates, and tighter criteria that may be constraining those borrows who do wish to remortgage." "Today’s lending figures are further confirmation that banks are still not lending in sufficient quantities explaining the frustration felt by many would-be borrowers. Much more needs to be done by lenders in order to revitalize the mortgage market," said Asher Montlake of mortgage broker Coreco.