Banks in the UK are not expecting borrowers to get mortgage loans more easily in the coming months, according to a survey conducted by the Bank of England (BoE).
The current economic condition is expected to hinder the availability of mortgage loans in the next three months. However, BoE’s Credit Conditions Survey found that the number of secured credit available to homeowners had increased in the past quarter.
The bank said that several mortgage lenders suggested that there had been an increase in credit for small businesses. Demand for mortgages and credit card lending among homeowners dropped in the past three months, as the proportion of household defaulting on credit also dropped.
The survey was released a day after BoE’s lending data showed that UK consumers have repaid more unsecured debt than the amount of new loans they took out in August.