Lenders expect to make credit more available, survey shows

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According to new research by the Bank of England BoE, credit is set to become more available.

Lenders have said they expect to make credit more easily obtainable to businesses and households in the coming quarter.

However, the lenders do not expect a substantial pick-up in demand.
The central bank's quarterly credit conditions survey out today July 2nd showed the first increase in the availability of secured credit to households since the third quarter of 2007.

"While concerns about the economic outlook had continued to bear down on credit availability, the impact had been smaller than in previous surveys," Reuters quotes the BoE as saying.

Lenders expected demand for mortgages and household demand for secured credit to remain steady but they expect that demand from small business will pick-up, according to the survey.

April official data showed the weakest flow of net lending to businesses since June 2000. The major UK lenders reported that net lending remained very weak in May.

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2009-07-02 11:10:46 © Moneyextra.com