Lenders to scale back bor­row­ing

Cyprus Today - - UK -

IN­CREAS­INGLY cau­tious Bri­tish lenders ex­pect to scale back mort­gage lend­ing in the next three months by the great­est ex­tent since the depths of the fi­nan­cial cri­sis in late 2008, a Bank of Eng­land sur­vey showed on Thurs­day.

With less than six months to go un­til Bri­tain leaves the EU, the BoE’s quar­terly Credit Con­di­tions Sur­vey showed re­duced ap­petite for risk was the big­gest drag on banks’ and build­ing so­ci­eties’ plans to sup­ply se­cured bor­row­ing and loans for busi­nesses.

Over­all, the sur­vey added to a sub­dued out­look for Bri­tain’s hous­ing mar­ket. Also on Thurs­day, the Royal In­sti­tu­tion of Char­tered Sur­vey­ors said their mem­bers were the most down­beat about house prices since the Brexit vote in 2016.

The BoE also said lenders ex­pect de­mand for un­se­cured loans to con­sumers to fall by the most since late 2011, which might help to soothe un­ease at the BoE about strong growth in con­sumer credit over the past cou­ple of years.

Lenders ex­pect to re­strict the avail­abil­ity of loans to busi­nesses over the next three months by the most since early 2012, the BoE said

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