Mortgage availability 'may fall'

Posted: 02 Jul 2010 10:46:22 GMT

Consumers seeking to get a mortgage to finance a house purchase may not welcome predictions made by the Bank of England.

According to the institution, the availability of secured credit supplied by financial service providers could tighten.

Its quarterly credit conditions survey found that such firms expected to lend less money over coming months.

"Lenders expected the availability of secured credit to fall back in the next three months, in part reflecting expectations that wholesale funding markets might tighten in that period," the Bank said.

The results may increase some people's concerns over the possibility of a so-called 'double-dip' recession occurring.

After the details of the Budget were announced, fears emerged that the austerity package may have a detrimental impact on the economy - and potentially on the country's housing market.

However, on a more positive note, the Bank's survey also revealed an unexpected fall in mortgage default rates.


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