The Bank of England’s Credit Conditions Survey for the third quarter of 204 found that lenders reported that the availability of secured credit to households fell significantly in the three months to early-September. This followed eight consecutive quarters of expansion.
However, lenders expected availability to increase over the next three months.
Meanwhile, lenders reported that the availability of unsecured credit to households increased in Q3, with a further increase anticipated in Q4.
Demand for secured lending for house purchase was reported to have decreased significantly in 2014 Q3. Lenders expected demand to increase over the next three months.
The Bank said demand for corporate credit from small businesses was reported to have decreased in Q3. In contrast, demand for lending from medium-sized companies increased significantly, and demand from large corporates also increased.
In addition, default rates on loans to small businesses increased slightly in Q3. Default rates on loans to medium-sized companies fell and they decreased significantly for loans to large corporates. Losses given default were unchanged for small businesses but fell significantly for medium-sized companies and large corporates.