The 2010 Q4 Credit Conditions Survey conducted between 12 November and 7 December 2010 shows lenders reported that the availability of secured credit to households remained broadly unchanged in the three months to early December 2010 and is expected to remain at a similar level over the next quarter. Lenders also report that the availability of lending has been controlled somewhat by home owner’s expectations for house prices.
Unsecured lending availability to households is reported to have fallen a little in Q3 but this is expected to increase slightly in 2011 Q1.
In sheer contrast to the fall in demand for secured lending for house purchase, demand for secured lending for remortgages rose. This rise, however, is not expected to continue over the next quarter.
Lenders have also reported that the default rate on secured loans remained mainly unchanged in Q4 but this is expected to rise over the next quarter. However defaults on unsecured loans were reported to have fallen for the fifth consecutive quarter.
The Survey suggests that the total number of mortgage approvals for 2011 will not differ greatly from 2010 but lenders do appear to be making lower loan to value mortgages (75% LTV) more readily available. This, however, doesn’t help the first time buyers who will continue to struggle if they are unable to raise the high deposits required.
The full Credit Conditions Survey can be found here:
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