Finance

British lenders expect lower mortgage demand in early 2026, BoE says

Published by Global Banking & Finance Review

Posted on January 15, 2026

1 min read

· Last updated: January 19, 2026

Add as preferred source on Google
British lenders expect lower mortgage demand in early 2026, BoE says
Global Banking & Finance Awards 2026 — Call for Entries

LONDON, Jan 15 (Reuters) - British lenders expect to see demand for mortgages fall in early 2026 after dropping at the end of last year, according to a Bank of England survey published on Thursday.

UK Lenders Anticipate Decline in Mortgage Demand by Early 2026

Mortgage Demand Trends in the UK

LONDON, Jan 15 (Reuters) - British lenders expect to see demand for mortgages fall in early 2026 after dropping at the end of last year, according to a Bank of England survey published on Thursday.

Consumer Lending Outlook

The BoE's quarterly Credit Conditions Survey also showed lenders expected demand for unsecured consumer lending to be flat after rising in late 2025.

Corporate Lending Expectations

Demand for corporate lending in the three months to the end of February was expected to be unchanged too, the survey showed.

The survey of lenders took place between November 10 and December 3.

(Writing by William Schomberg; editing by David Milliken)

Key Takeaways

  • British lenders predict a fall in mortgage demand by early 2026.
  • The BoE survey indicates flat demand for unsecured consumer lending.
  • Corporate lending demand is expected to remain unchanged.
  • The survey was conducted between November 10 and December 3.
  • The report highlights trends in UK lending markets.

Frequently Asked Questions

What is mortgage demand?
Mortgage demand refers to the desire of consumers to take out loans to purchase homes. It can fluctuate based on economic conditions, interest rates, and housing market trends.
What is consumer lending?
Consumer lending involves loans given to individuals for personal use, such as purchasing goods or services. This includes credit cards, personal loans, and mortgages.
What is corporate lending?
Corporate lending refers to loans provided to businesses for various purposes, including operational costs, expansion, and capital investments. It is a crucial aspect of business financing.
What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
What is the Credit Conditions Survey?
The Credit Conditions Survey is a report published by the Bank of England that assesses the lending environment, including demand for loans and credit availability from financial institutions.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category