The survey contained some good news for the housing market. First, lenders reported that the availability of secured (i.e. mortgage) credit rose in the three months to June, as they had expected in the previous survey back in early April. That increase was driven solely by the lenders themselves being able to access cheaper/more readily available sources of finance. What’s more, the supply of mortgage credit is expected to rise again over the next three months.
Meanwhile, households’ demand for secured credit for house purchase also increased in the three months to June, the first rise since 2007Q4. The rise was in stark contrast to the fall that lenders had anticipated three months ago. The demand for buy-to-let finance declined in Q2, with prime (or owner occupier) mortgages the sole driver of the overall increase.
