Mortgage providers have told the Bank of England the availability of products are likely to fall within the coming months affecting the chances of homeowners significantly. A survey conducted by the central bank showed secured credit availability is set to decrease over the three months to August. This is despite demand for mortgages soaring after the lifting of the property market freeze.
It appears more lenders are taking a cautious approach to offering products to Britons, as financial instability continues to ravage the country.
As government support measures draw to a close, there is also concern building over mass unemployment, likely to affect the ability to afford significant payments.
Consequently, it seems lenders are reluctant to hand out deals, as they are concerned about people defaulting on payments.
There are already signs of the property market losing its footing despite new measures being introduced, it has been suggested.
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Providers of loans have also told the central bank that while demand is high, availability is set to reduce.
The survey found the length of interest-free terms on credit cards is expected to continue falling.
Deals of a length seen before the crisis are now scarce, leaving little option for Britons.
Lenders have told the Bank of England demand for new mortgages alongside remortgaging had dropped in the three months to May.
The property market froze temporarily as a result of the introduction of lockdown measures.
In March, Prime Minister Boris Johnson advised people not to move house during emergency stay-at-home measures.
And many mortgage products were rapidly pulled from the market as a result of announcements.
While the property markets in all four corners of the UK have now reopened, it is no longer full steam ahead.
Health and safety measures, alongside social distancing, have to be implemented, and the precarious financial circumstances felt widely are still having implications on moving and mortgages.