According to a recent survey from the Bank of England (BoE), mortgage demand falls from a measure of -35.3 in the third quarter to -34.8 in the last quarter. The data, which was conducted between 22 November and 10 December, showed demand for remortgages rose in the last quarter of 2021, to a score of 70.4, up from 34.5 in Q3.
Lenders expect this will cool over the next three months to -28.7 amid expectations of interest rate
rise, despite credit conditions still remaining loose for borrowers. The scores for lender responses are calculated by market share, with a larger weighting given to those with a bigger share. While a positive reading indicates an improvement to the respective scenario, the negative reading suggests a decline.
However, mortgages are expected to become more widely available, as banks look to an easing of
conditions for borrowers with smaller deposits. The number of lenders predicting credit conditions will loosen over the next quarter exceeded those saying it would tighten by 15% according to the BoE survey.
September marked the final month buyers could benefit from the stamp duty holiday and help consumers as the economy contracted during the Covid-19 lockdowns. The holiday was extended from 31 March 2021 to the end of June and once more, tapering from June to the end of September, as people rushed to market. House buyers could have cashed in on savings of up to £15,000 if they bought at the right time. The break caused a frenzy in the market, with many using it as an excuse to make long-awaited moves, buy for the first time or purchase second homes.
