Will mortgage availability increase in early 2026 according to the Bank of England?

Yes, the Bank of England survey indicates that mortgage availability is expected to edge up over the three months to the end of February 2026.

What is the trend for mortgage demand among homebuyers?

Demand for mortgage lending among home buyers fell in the final quarter of 2025 and is expected to continue declining in the first quarter of 2026.

Are mortgage default rates changing according to lenders?

Lenders reported that default rates on mortgages to households fell in the final months of 2025 and are expected to decrease further in early 2026.

Home / Business and Economy / Mortgage Availability Ticks Up Amidst Falling Demand

Mortgage Availability Ticks Up Amidst Falling Demand

15 Jan

•

Summary

Mortgage availability is predicted to increase in the next three months.
Demand for mortgages from homebuyers decreased in late 2025.
Lenders reported falling mortgage default rates in late 2025.

Mortgage Availability Ticks Up Amidst Falling Demand

According to a Bank of England survey of lenders, mortgage availability is set to increase over the next three months ending in February 2026. This follows a reported rise in availability to households in the three months concluding November 2025. Despite this improved outlook from lenders, demand for mortgage lending from home buyers declined in the final quarter of 2025 and is expected to continue falling into early 2026.

In more positive news for the housing market, lenders also observed a decrease in mortgage default rates among households during the final months of 2025, with further declines anticipated. This contrasts with a rise in credit card defaults, which increased and are expected to continue their upward trend into early 2026, reflecting growing financial pressures on consumers.