Finance
UK lenders expect demand for mortgage and consumer credit to flatten
Published by Global Banking and Finance Review
Posted on October 16, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 16, 2025
LONDON (Reuters) -British lenders expect to see unchanged demand for mortgages in the last three months of 2025, according to a Bank of England survey published on Thursday that added to other signs of a cooling of the housing market.
The BoE's quarterly Credit Conditions Survey showed lenders reported no change in demand for loans for home purchases in the July-to-September period and a similar flat picture was expected between October and December.
Karim Haji, global and UK head of financial services at KPMG, said mortgage activity appeared more mixed than earlier in 2025 with some signs of easing demand for house purchases.
"This suggests the market may be pausing for further clarity on rate cuts rather than an abrupt downturn in buyer interest," Haji said.
The BoE held its benchmark Bank Rate at 4% in September and it has said the outlook for further reductions in borrowing costs depends on how the persistent inflation pressures in the economy develop.
The Royal Institution of Chartered Surveyors said last week that Britain's housing market lost momentum for a third month in a row in September, potentially due to worries about tax increases in finance minister Rachel Reeves' November budget.
The BoE's survey on Thursday showed lenders expected overall demand for unsecured lending to be unchanged in the fourth quarter, suggesting consumers were turning more cautious about borrowing.
(Writing by William Schomberg, Editing by Paul Sandle)