The Bank of England said U.K. mortgage demand rose “significantly” in the second quarter and is expected to increase again over the next three months.
An index of mortgage demand jumped to 32.1 from minus 40.8 in the first quarter, the central bank said in a report published in London on Monday. The availability of secured lending also increased.
The report also showed that an index of demand for buy-to-let mortgages jumped to 22.2 in the second quarter from minus 15.8. The BOE is concerned about the rate of growth in this sector and is reviewing the market to see if it may need to act to prevent a buildup of risks.
On business lending, the BOE said demand for lending from small companies increased “significantly” in the three months through June. The ability of small firms to access credit also improved, with the BOE’s index rising to the highest in almost five years.
Overall credit availability to businesses was unchanged in the second quarter, but is expected to increase in the current three-month period, the BOE said.
Read this next:
- Carney’s Rate Setters Split on Pay Outlook as Warnings Mount
- Greece Adds to Hurdles Impeding Early BOE Rate Increase: Analysis