UK mortgage demand rose in the second quarter of 2013.
The Bank of England, which has recently changed its leadership structure, surveyed major banks across Britain and found more loan applications had been sent by householders in April, May and June than in the first part of the year.
Economists at the institution forecast this will continue into the third quarter as the UK’s recovery gathers momentum – undeterred by poor demand across the eurozone.
It is expected this rise in mortgage demand will deter rate-setters at the Bank of England from starting another round of quantitative easing, which critics say will dramatically increase the level of inflation across the country.
Jens Larsen, an economist at RBC Capital Markets, told the Financial Times: “Monetary and financial conditions in the UK have clearly improved and the case for a further general expansion of monetary policy is weak.”
The rising cost of rentals properties is also believed to be one of the reasons many are turning to mortgages, as repayments often cost less than the price of letting.
