Mortgage holders may face future problems say the Bank of England.
In the first 3 months of 2012 mortgage providers have reduced households credit levels, tightened their lending criteria and increased arrangement fees.
According the the bank of England more is yet to come as high street banks and building societies reduce mortgage lending further in Q2 of 2012 which could halt further economic recovery.
The BOE's credit conditions survey for the last quarter reveals that mortgage approvals fell during February to their lowest level for 8 months. Lenders are reporting that are expecting to both reduce the number of available home loans, and increase their rates over the coming months.
Lord Oakeshott who is the former Treasury spokesman for the Lib Dem's has commented on this development saying that green shoots in the UK's economic garden will not be possible while banks block the hosepipe.
Robert Gardner, Nationwide's chief economist has advised that things may improve over the summer if the wider economic outlook starts to improve however this is not guaranteed.
In light of the fact mortgage borrowers could face problems down the line in being accepted for a new mortgage, Deal Direct advise those looking for a deal to make a move now before lending criteria tightens further.
Contact Deal Direct and we will compare all available UK mortgages on your behalf.
