| The availability of mortgage is expected to decline | | | | research, all of these factors have resulted in a 60% |
| further in the coming months, influencing an ensuing rise | | | | decrease of mortgage deals since the same time last |
| in average mortgage cost. The BoE (Bank of | | | | year. |
| England's) most recent quarterly credit survey | | | | As mortgage lending decreases, the products still |
| announced there will be further constrictions on | | | | available will take on much higher, premium prices. As |
| borrowers as many lenders will make secured credit | | | | David Black, Principal Consultant Banker at Defaqto |
| even less available than in the beginning of the year. | | | | stated, "in an atmosphere of financial mayhem, it is |
| Even unsecured lending, such as through credit cards, | | | | hardly surprising it is the poor consumer who is caught |
| is also expected to drop in availability as a result of the | | | | in the middle and is having to pay more for less |
| increasing credit crunch. | | | | choice." The reduced level of competition means the |
| About 31% more lenders claimed they decreased their | | | | consumers will be charged more for basic services, |
| lending amounts in the months up to mid-March than | | | | placing many people, especially those with poor credit |
| those who increased their lending. Furthermore, around | | | | history or insufficient mortgage deposit funds, at much |
| 43% more lenders are expected to reduce their | | | | greater risk. |
| mortgage lending in the following quarter. Lenders claim | | | | To complicate matters further, demand from |
| to have reduced mortgage availability through a | | | | consumers looking to remortgage their property has |
| combination of contracting their credit scoring and | | | | risen in the last quarter and is expected to rise further. |
| lessening their maximum loan to value ratios they had | | | | Consequently, as the demand for mortgaging |
| previously advanced. Amplified concerns surrounding | | | | increases and the banks reduce their mortgage |
| the housing market, as well as the banks' increased | | | | availability, lenders will find themselves inundated by |
| difficulty in raising funds because of the "credit crunch" | | | | tremendous demand and consumers paying far more |
| have influenced this decrease in mortgage lending. As | | | | than past rates. |
| Moneyfacts.co.uk has exposed through extensive | | | | |