You are here: Home - Mortgages - First Time Buyer - News -

Mortgage demand falls ‘significantly’ in 2018

Written by: Lana Clements
Demand for mortgages dropped significantly in the first three months of this year, according to lenders surveyed by the Bank of England.

The fall in appetite came from both prime and buy to let, as well as remortgages, the survey showed.

However, lenders expect remortgage demand to pick up again in the second quarter, between April and June.The Bank of England is tipped to raise interest rates in May, which could prompt another wave of remortgaging.In an overall review of the credit market, the Bank of England said mortgage competition has continued to intensify.

Interest rates on higher loan to value (LTV) products have actually fallen since November – despite an increase in swap rates, which affect the cost of funding for lenders.

Interest rates on lower LTV products have were broadly unchanged over the same time period.

The Bank said: “The major UK lenders noted that competition remains very strong and since November has increased in the higher LTV market, perhaps in part because profit-margins for lower LTV products are already squeezed.”

Mortgage lending is growing steadily, with higher remortgaging in recent months, according to policymakers.

The Bank said: “Approvals for remortgaging have risen since early 2015 and there were a couple of particularly strong months in late 2017.

“More frequent remortgaging has partly been encouraged by the increase in popularity of two-year fixed rate deals.

“Intelligence from lenders suggests a particularly large number were coming up for renewal in late 2017.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
electric cars
Three reasons to consider investing in electric cars

The electric vehicle (EV) market has made measured progress in the UK over the past ten years. However, the sector...