Mortgage demand is expected to weaken over the summer, market data suggests.
The latest Credit Conditions Survey from the Bank of England shows lenders reported that demand for secured lending for house purchase increased in the second quarter but is expected to decrease in Q3.
Lenders also reported that the availability of secured credit to households was unchanged in the three months to end-May 2026 but is expected to increase over the next three months to end of August 2026.
Any new borrowing may be at slightly cheaper rates though. Lenders reported that overall spreads on secured lending to households widened in Q2 but were expected to narrow in Q3.
WEATHERING THE STORM
Commenting of the data, Nathan Emerson, chief executive of Propertymark, says: “More stable levels of secured debt, such as mortgages, generally indicate there has been no sudden or harsh shift in consumer confidence.
“The figures lean towards demonstrating many households have weathered current Middle Eastern geopolitical tensions remarkably robustly, potentially helped by inflation seeing a recent dip and base rates not seeing any increases.
“Recent uncertainty within the global economy has added a degree of reservation regarding financial certainty for many people, and with some UK Government policy effectively being paused until there is clarity on the next Prime Minister, the next twelve months may prove essential to closely scrutinise.”
