Mortgage credit scores jump, and will stay high

The median credit score on mortgages originated in the second quarter surged to a 21-year high, as lenders tightened standards in response to uncertainty over the labour market. While unemployment is now falling back, we expect it will remain above 5% to at least the end of 2022. Alongside the risk of future waves of infection, and potentially less generous government support, that suggests lending standards will remain tight over the next few years.