Mortgage lending could tighten further in Q3

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Lenders fear residential lending could be restricted further over the next three months, according to a Bank of England (BoE) report.

The latest BoE credit conditions survey showed household demand for mortgages and other secured credit did weaken in Q2, which is unexpectedly also the case with credit demand from large corporates. A small number of providers reported lending more to borrowers with a higher than average Loan To Value (LTV) but lending was still restricted for those with smaller deposits. Lenders expected greater demand from borrowers over the last three months, with the Stamp Duty changes and the end of the cold weather, but were disappointed. Providers suggested continued uncertainty over interes...

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