26-09-2007
Bank of England survey encouraging
The Bank of England's recent credit conditions survey contains encouraging news, it has been claimed.
According to comments made by Michael Coogan, director general of the Council of Mortgage Lenders (CML), it is encouraging that lenders participating in the survey remain confident about the future prospects for mortgage lending.
"Although this survey was undertaken before the Northern Rock situation emerged, the funding constraints arising from the slowdown in the interbank lending market were already apparent," said Mr Coogan.
"Against this backdrop, it is encouraging to see that the lenders contributing to the Bank survey largely expect the supply of mortgage lending to hold up," he added.
Indeed, the report also found that over the last three months, the number of defaults on secured loan arrangements had been lower than thought to be the case.
The CML represents 98 per cent of the UK's mortgage lenders.