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Lenders expect mortgage demand to shrink in early 2025, Bank of England finds

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Lenders expect mortgage demand to shrink in early 2025, Bank of England finds - The latest survey findings point to the financial strain on households against a backdrop of continued inflationary pressures,
The Bank of England's latest Credit Conditions Survey indicates that lenders anticipate a contraction in mortgage demand in early 2025. This expectation comes amidst a backdrop of economic uncertainty and potential shifts in monetary policy. The survey, which gathers insights from banks and building societies, also highlighted that while there might be a slight increase in demand for secured lending in the short term, the overall trend points towards a decrease. Factors contributing to this outlook include higher interest rates, economic recovery pace, and changes in consumer confidence. Additionally, lenders expect a slight tightening of credit conditions, which could further dampen demand for mortgages.

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