According to Craig McKinlay, new business director at Kensington Mortgages, banks might be suffering from a sudden cut off from cheap funding from the Bank of England’s Term Funding Scheme, which had been an important source of funding for many high street banks and building societies over the past decade but closed over a year ago.
He thought this, alongside political uncertainty and subdued growth due to the increased competition in the mortgage market, had impacted on the volume of lending.
Mr McKinlay said Kensington Mortgages was continuing to grow its lending by targeting new segments.
Nationwide also confirmed it had not made any changes to its lending criteria.
imogen.tew@ft.com
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