Large decrease in lending for house purchased predicted for 2024
UK Finance, a trade organisation representing UK bank anticipates an 8% decrease in UK lending for house purchases in 2024 due to higher interest rates and household costs, impacting mortgage credit accessibility based on affordability. This trend is expected to result in reduced lending across all sectors and a rise in repossessions. However, a more positive lending outlook is projected for 2025. Mortgage arrears are forecasted to increase, and while the Bank of England held interest rates at 5.25% in November, the possibility of rate cuts remains uncertain. Despite challenges, UK Finance is hopeful for a turnaround in 2025, attributing the current lending limitations to household financial pressures likely to fade gradually.
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00:00 UK Finance, a trade organisation representing UK banks, anticipates an 8% decrease in UK
00:10 lending for house purchases in 2024 due to higher interest rates and household costs,
00:17 impacting mortgage credit accessibility based on affordability. This trend is expected to
00:23 result in reduced lending across all sectors and a rise in repossessions. Mortgage arrears
00:30 are forecasted to increase and while the Bank of England held interest rates at 5.25% in
00:38 November, the possibility of rate cuts remains uncertain. Despite challenges, UK Finance
00:45 is hopeful for a turnaround in 2025, attributing the current lending limitations to household
00:53 financial pressures which are likely, they believe, to fade gradually.