First-time buyers are due to face more setbacks as the latest Bank of England report suggests plans to tighten restrictions on lending.
In the Bank of England’s Credit Conditions Survey, lenders predict that the availability of secured credit to remain constant over the next financial quarter. The availability of high loan to value (LTV) ratios for borrowers is expected to “decline markedly” however.
“The elevated cost of wholesale funding for banks has continued to be passed through to spreads on secured household lending, and lending to firms,” the report states.
The survey was conducted in May before governor Sir Mervyn King declared cut-price long-term loans incentives for banks on the basis they share the benefits with their customers.