Bank of England: Mortgages unlikely to boom just yet

Posted: 22 Apr 2009 12:54:46 GMT

A new monthly report from the Bank of England (BoE) suggests that mortgage lending will not increase significantly in the coming months.

Instead, the first Trends in Lending survey has found that the recent green shoots will remain just shoots for the immediate future.

For homeowners trying to sell their property such news could mean a longer wait or lower house prices, so selling a home online could prove to be one step towards finding a buyer faster.

The Council of Mortgage Lenders (CML) said that the BoE report aligned itself very much with the outlook shared by the CML.

A statement from the Council said: "The report confirms the CML's view that there has been a modest pick-up in housing market activity recently, but that it remains at an extremely low level.

"Despite this small improvement, the CML does not foresee a lasting, significant increase in lending volumes until funding conditions improve."

The new Trends in Lending report will be published monthly, but in the mean time, homeowners may find that advertising a property online could lead to it being seen by a greater number of potential buyers.


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