Mortgage and Credit Card borrowings on decline says BoE
Some may say it is the winter slowdown, others will blame it on Brexit and some will think it is both combined, but Bank of England has recently warned of a decline in credit card spending with another negative of -17.5 in the final quarter of 2018 for new mortgages taking place.
The worst Christmas for retailers for years was recently declared and the fear is that the reluctance to spend will set up weak economy figures as weak demand for mortgages is expected to continue at least for the first quarter of 2019 with Brexit mayhem in the air.
A noticeable decline of first time buyers entering the market will continue for sure as house prices start to tumble and headlines are mostly negative for the immediate house price value charts – It is a sit and wait scenario for many in hope they can bag a bargain and fear also of jumping in too early and that much more damage could be on the cards and house prices are already over inflated so can easily accept a 30% drop.
Demand for purchase mortgages forecast to fall in early 2019 – Bank of England. Full story can be read on the Mortgages Solutions website.