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UK lenders scale back mortgage supply for first time in 3 years - Finance news and analysis from Global Banking & Finance Review
Finance

UK lenders scale back mortgage supply for first time in 3 years

Published by Global Banking & Finance Review

Posted on October 8, 2026

1 min read

· Last updated: October 8, 2026

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UK Lenders Reduce Mortgage Supply and See Falling Demand, BoE Survey Reports

Trends in UK Mortgage Lending and Demand

Reduction in Mortgage Availability

LONDON, Oct 8 (Reuters) - British lenders reduced the availability of mortgages and other secured lending to households for the first time in three years during the three months to the end of August, a Bank of England survey showed on Thursday.

Falling Demand for Mortgages

Demand from households for mortgages also fell, according to the BoE's quarterly Credit Conditions Survey, dropping by the most since the early 2023, though a recovery was predicted for the current quarter.

Recent BoE Data on Mortgage Approvals

The figures chime with separate BoE data released last week which showed the number of mortgages approved for house purchase in August fell to its lowest since December 2023.

Impact of Interest Rate Expectations

Earlier on Thursday, the Royal Institution of Chartered Surveyors said the prospect of higher Bank of England interest rate was weighing on Britain's property market.

Reporting and Editing

(Reporting by David Milliken; editing by Suban Abdulla)

Key Takeaways

  • Availability of secured lending to households declined in the three months to end‑August, marking the first fall in three years, per the Bank of England’s Credit Conditions Survey (standard.co.uk)

References

Frequently Asked Questions

Why did UK lenders reduce mortgage availability?
According to a Bank of England survey, British lenders reduced the availability of mortgages due to changing credit conditions and weakening demand.
How much did mortgage demand fall in the UK?
The Bank of England's survey showed the demand for mortgages dropped by the most since early 2023.
What impact could higher interest rates have on the UK housing market?
The Royal Institution of Chartered Surveyors noted that expectations of higher interest rates are weighing on Britain's property market.
Is there an expected recovery in UK mortgage demand?
A recovery in mortgage demand was predicted for the current quarter, according to survey respondents.
What related data did the Bank of England release recently?
Separate BoE data showed that mortgage approvals for house purchases in August fell to their lowest since December 2023.

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