Banks expected to reduce mortgage lending 'even further'

Banks expected to reduce mortgage lending 'even further' Mortgage availability will continue to fall in the coming months as lenders tighten their lending criteria in the face of rising defaults, the Bank of England said today. Banks said they had reigned in mortgage lending during the three months to mid-June, with many anticipating further cut backs during the third quarter as the economic outlook continues to worsen. They also plan to further tighten their lending criteria, with continued increases in the size of the deposits they demand from borrowers, although the cost of mortgages looks set to remain broadly unchanged. The Bank of England's Credit Conditions Survey found that a net balance of 47% of lenders had reduced mortgage availability during the three months to mid-June, with a balance of 22% anticipating further... [read full story]