Lenders report mortgage numbers down, with only slight upturn ahead

Mortgage lenders report a drop in the number of home loans, and warn only a slight upturn is expected.

New credit conditions data from the Bank of England show the availability of secured credit to households decreased in the three months to end of August.

It was though expected to increase slightly over the next three months to the end of November.

Demand falls

The lenders also recorded demand for secured lending for house purchases decreased in Q3, but was expected to rise slightly in Q4. Demand for secured lending for remortgaging also fell in the third quarter, and was expected to go up in the fourth, the Bank’s figures show.

Earlier this week, it was revealed that mortgage deals priced below 5% have all but vanished.

The findings by Moneyfacts suggested the number of fixed deals priced below this point had collapsed by 99% in a single month.

Growing confidence

Nathan Emerson, CEO at Propertymark, says: “It is encouraging to see growing confidence around the potential demand for secured lending for house purchases and remortgaging in the months ahead.

“While the year has proved challenging for many consumers from an affordability perspective, improved access to finance could provide an important catalyst for greater confidence across the housing sector as we approach the end of the year and head into 2027.

“Maintaining access to affordable lending will be important in helping the market build momentum and providing greater certainty for consumers.

Caution

Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, says: “The latest Bank of England Credit Conditions Survey shows caution on both sides of the market.

“Lenders reported that the availability of both secured and unsecured credit to households decreased in Q3, while demand for mortgages, for both house purchase and remortgaging, also fell.”