UK households’ demand for secured lending is forecast to fall further in the fourth quarter, the Credit Conditions Survey from the Bank of England showed on Thursday.
Lenders said the demand for secured lending for house purchase decreased in the third quarter and was expected to drop further in the fourth quarter.
Meanwhile, overall demand for unsecured lending moved up in the third quarter, across both credit cards and other unsecured lending, and was forecast to increase further in the coming quarter.
At the same time, demand for corporate lending from small businesses and medium-sized businesses decreased in the third quarter, while that from large firms increased over the same period.
Demand for corporate lending in the fourth quarter was forecast to climb for large businesses and increase only slightly for small and medium-sized firms.
Lenders reported that the availability of secured credit to households improved in the three months to end-August and it is expected to climb further over the next three months to end-November.
The availability of unsecured credit to households gained in the third quarter and was expected to grow further.
Lenders reported that the overall availability of credit to the corporate sector remained unchanged the third quarter and was expected to remain the same in the fourth quarter.