Home Loan Availability to Improve

Fri, 23 Oct 2009

Lenders in the UK expect home loans to be more widely available in the coming months, according to a new report by the Bank of England . The Bank of England’s Trends in Lending report offers a positive outlook for the coming months despite a weak third quarter. Lenders reported poor application levels for personal loans and credit cards, as consumers look to pay off their debts rather than extend their range of debt .

Borrowers may also have been put off trying to secure further credit by an increase in interest rates, with new mortgages becoming more expensive in August with an average interest rate of 4.3 per cent, compared to 4.2 per cent in July. Meanwhile, there was no increase in the demand for car loans, despite claims that the motor industry had recovered.

Although the report suggests that credit will become more readily available in the coming months, it also warns of tightened credit scoring criteria. The Financial Services Authority (FSA) this week proposed a tightening of the regulation of mortgages, suggesting that lenders should verify every borrower’s income before approving a home loan .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

newsnews rss
Personal loans news
BBA Reveals Home Loan Dip - Mon, 26 Jul 2010
Government to Conduct Personal Loan Review - Thu, 22 Jul 2010
Positive Home Loan Trend Continues in May - Fri, 16 Jul 2010
More News
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form