Secured lending demand 'remains robust'

The demand from consumers for secured lending has remained strong in recent months while supply has been constrained.

Such is the Council of Mortgage Lender's (CML) assessment of the latest Bank of England credit conditions survey.

The council states that a "mismatch" existed between what was expected at the time of the last survey and the three months that have occurred since, highlighting the volatility of the current marketplace.

As a result, market sentiment now stands "remarkably gloomier" - although the default rate on secured lending has not proven as poor as lenders forecast.

Bob Pannell, CML head of research, commented: "This survey corroborates other evidence of worsening market sentiment. This may increase the chances of interest rate cuts sooner rather than later if inflation remains subdued.

He added that those wishing to make their personal finance situations as strong as possible should review all help with money currently received from lenders and plan ahead if they are reaching the end of fixed-rate deals.

Recently, the CML reported that variable-rate mortgages are gaining in favour as borrowers foresee a fall in interest rates.