UK Lenders Forecast Rise in Mortgage Demand for Q2
UK lenders expect mortgage demand to grow through May following a flat start to 2026. A Bank of England survey shows consumer credit demand should stay steady.
Lenders in the United Kingdom anticipate a resurgence in mortgage demand over the second quarter of 2026. This follows a period of stagnation at the beginning of the year, according to data released by the central bank. The quarterly Credit Conditions Survey, published by the Bank of England on Thursday, indicates that financial institutions expect the volume of mortgage applications to increase in the three months leading up to the end of May. This shift comes after demand for home loans remained largely flat during the initial months of 2026. While the housing market shows signs of picking up, the outlook for other types of debt is more subdued. The survey found that demand for unsecured consumer lending, which includes credit cards and personal loans, is projected to remain unchanged during the same period. The findings are based on a survey of lenders conducted between February 23 and March 13, 2026.
