More mortgage best deals to be offered by lenders
Mortgage lenders in 2012 are expecting to offer a great range of new mortgage best deals to struggling first-time buyers, however a recent survey has shown they will be harder to get.
Lenders are expecting that the proportion of total loan applications successfully approved will fall over the first quarter of 2012. Some lenders have revised down expectations for households' disposable income and hence the affordability of taking out new secured loans.
The Bank of England has said that lenders are planning to launch more innovative mortgage best deals on high loan-to-value mortgages. They went on to add, that as lenders are predicting the credit scoring criteria for granting these loans would be tightened in the first three months of this year, mortgage approvals are likely to drop.
'Factors such as the cost and availability of funds, the economic outlook and expectations for house prices were all expected to pull down on credit availability,' the Bank reported, in its survey of credit conditions.
The Bank of England report comes soon after it revealed a surprise rise in the number of mortgages approved in November 2011. Loan approvals for house purchases unexpectedly rose to 52,854 in November 2011 with a total value of £7.6 billion. There is however fear that approvals for new mortgage best deals for house purchases might soon start to fall as banks further restrict the availability and raise the price of credit.
