A new apartment tower currently under construction in New York is set to become the world’s tallest residential building when it is completed in 2018.
More mortgages set to be available
Lenders expect their appetite to lend to homebuyers with deposits of 10 per cent or less to continue to increase, a survey shows
Mortgage availability is set for a "significant" lift in the coming months as lenders become more willing to hand out low-deposit deals, a Bank of England report has found.
A "greater risk appetite" among lenders was given as one factor behind recent improvements seen in mortgage availability, along with a desire by lenders to increase their market shares.
The Bank's Credit Conditions Survey adds to a string of recent studies which have pointed to signs of life returning to the housing market amid Government efforts to unblock lending, which have led to lenders ramping up competition and slashing their mortgage rates.
Demand for mortgages was reported to have risen to its highest level since autumn 2009 in the second quarter of this year and a further pick-up is expected in the next three months.
Some lenders reported that the Government's Help to Buy scheme, which is specifically aimed at helping people with smaller deposits, should result in more lending at high loan to value (LTV) ratios.
Lenders expected their appetite to lend to homebuyers with deposits of 10% or less to continue to increase, as it has been doing in the past three months.
Mortgage availability is expected to rise across LTV ratios over the next three months, with market-share objectives cited as the biggest contributing factor.
Loan availability for businesses also picked up in the second quarter of this year, among firms of all sizes, with big companies seeing the biggest increase, the report said.
But lenders expect loan availability to the corporate sector to be "little changed" in the next three months. They said they had slashed their profit margins significantly on loans offered to big firms, with a slight decrease for medium-sized firms, and small businesses seeing little difference.
The most significant factor cited by lenders as pushing up demand for borrowing from businesses was an increase in mergers and acquisitions, mainly among large corporates.
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