Securing a mortgage 'set to get tougher over the summer'

More banks reined in home loans than offered easier money in the three months to June, the Bank of England's quarterly survey found. The drop in mortgage lending was the most dramatic since 2020, when the onset of Covid and lockdowns brought the property market to a standstill. Households could also find it tougher to get a mortgage or other forms of credit over the summer as there are expectations that default rates on loans are set to increase, the survey of lenders suggests. Banks and building societies expect mortgage availability to decrease slightly over the three months to the end of August, the Credit Conditions Survey found. Default rates on mortgage lending to households is expected to rise over the next few months. Demand for mortgages continued to rise in the second quarter, but is expected to fall across the three-month period, the Bank's report said.

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