Banks starting to offer low-deposit mortgage deals again
Mortgage availability is set for a "significant" lift in the coming months as lenders become more willing to hand out low-deposit deals, a Bank of England report has found.
A "greater risk appetite" among lenders was given as one factor behind recent improvements seen in mortgage availability, along with a desire by lenders to increase their market shares.
The Bank's Credit Conditions Survey adds to a string of recent studies which have pointed to signs of life returning to the housing market amid Government efforts to unblock lending, which have led to lenders ramping up competition and slashing their mortgage rates.
Demand for mortgages was reported to have risen to its highest level since autumn 2009 in the second quarter of this year and a further pick-up is expected in the next three months.
Lenders expected their appetite to lend to home buyers with deposits of 10% or less to continue to increase, as it has been doing in the past three months.
Mortgage availability is expected to rise across Loan-To-Value ratios over the next three months, with market-share objectives cited as the biggest contributing factor.