Andy Knee, Chief Executive of LMS, comments on the Bank of England’s Credit Conditions Survey for Q3 2012:
“The increase in availability of secured credit for borrowers requiring higher LTV’s is a positive sign, pointing to an easing of lenders’ affordability criteria, and lending for house purchase looks set to grow over the next quarter, boosted by the Funding for Lending Scheme.
“However, while the Bank of England suggests the outlook for remortgaging is not so rosy, our latest remortgage report paints a more optimistic picture, showing a significant uplift in new business that is now starting to flow through into completions. September and October are expected to be much stronger months for remortgage lending as customers complete switches to one of the numerous long term fixed rates at below 3%.
“Although remortgage lending as a proportion of overall lending may still appear subdued when viewed alongside the increase in house purchase activity, if higher LTV loans really are made available, then pent-up demand from second-steppers will also help drive a recovery in this section of the market.”