Commenting, she said: "Lenders have found their 'comfort zone' of mortgage approvals so the low figures we've seen recently will continue. There will be no miraculous U turn despite the Government's call to loosen the purse strings; the story of restricted choice and deals only for the 'chosen few' will remain.
"In this low rate/low risk environment, the challenge for lenders will be profitability and targeting the right borrowers. Increasingly borrowers will be happy to remain on the standard variable rate when they come to the end of their product. This is loyalty at a potentially unacceptable cost to the lenders given some of the low SVR rates available. We've already seen a flurry of conditions preventing borrowers from benefiting from the SVR rate and I expect that to continue.
"For new borrowers, lenders will maintain a tight rein on credit, and the competition for the 'best' customers will increase as lenders continue to turn away those seen as 'riskier' applicants. The focus will be on high deposits and equity and there'll be little respite for the housing market, where house values will continue to fall.
"For existing borrowers, the focus will be on the increasing number of people who fall behind on payments and there'll be a real spotlight on lenders ensuring they have the right support processes in place to manage customers through difficulties."
