BoE Q3 Credit Conditions Survey shows Brexit likely to have dented demand for UK mortgages

Bank of England's (BoE) quarterly survey for Q3 2016 conducted between 23 August 2016 and 14 September 2016 was published earlier today and showed that the Brexit fallout appears to have a negative impact on the demand for UK mortgages.

The report showed that demand for secured lending for house purchase dropped significantly in the third quarter. Within this, both demand for prime and buy-to-let lending decreased significantly, and the latter recorded the largest fall since the Credit Conditions Survey began in 2007. Demand for other unsecured lending products was reported to have increased slightly in Q3, after four consecutive quarters of significant increases.

Overall demand for corporate lending from small, medium and large businesses decreased significantly. Demand for lending from small and medium-sized businesses was expected to be unchanged and continue to decrease, respectively, in Q4. Demand from large business was expected rise slightly in Q4.

The survey which covers secured and unsecured lending to households, lending to non-financial corporations, small businesses, and to non-bank financial firms serves as an input into the quarterly Credit Conditions Review publication which presents the BoE's assessment of the latest developments in bank funding, and household and corporate credit conditions.