Mortgage demand to hit 12-year low as high interest rates hammer borrowers

Source: The Telegraph — 

Mortgage demand will hit a 12-year low this year as high interest rates pummel borrowers.

UK mortgage lending will grow by just 0.4pc in 2023, the slowest rate since 2011, according to economic forecaster the EY Item Club.

Anna Anthony, UK financial services managing partner at EY warned that an increasing number of borrowers could default.

She said: “Banks also face the prospect of the number of loan defaults rising amid the economic downturn.

“Stretched affordability will affect loan demand across all fronts and banks should be preparing for low and, in some cases, negative lending growth rates.”