Home loan demand will decrease further

It has been projected by loan providers that demand for home owner loans will keep dropping in the Q1 of 2011 because home buyers still exhibit caution.

This projection is reported in the Bank of England's (BoE) Credit Conditions Survey. In addition, lenders are also inclined to think that remortgaging demand will come to a standstill in the Q1, even though there was a small increase in the last quarter of 2010. 

According to the Bank of England's (BoE) Credit Conditions Survey, no considerable improvements of mortgage availability have been made during the last quarter of 2010.

Thus, it is no surprise that lenders think the level of loans available on the market will be about the same in the nearest future.

The situation is aggravated by a small drop in the availability of mortgages for customers who need to borrow more than 75 per cent of their home's value.

It has been reported that the levels of unsecured loans availed by British people had seen a slight drop during the final quarter of 2010, but was expected to increase over the next few months.

As for small business owners, they can expect improved availability of loans over the coming quarter.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.