Date Published 03 October 2012
The Bank of England’s latest credit conditions survey shows that both the demand for mortgages from individuals and the supply of mortgages from banks have increased in the three months to the beginning of September, according to Deloitte.
Damian Hales, partner at Deloitte, said: "The supply of mortgage lending has increased in advance of the Funding for Lending scheme and people are taking advantage of this, resulting in an increase in mortgage lending over last quarter.
"However, both the demand and supply for unsecured lending remains unchanged as households continue to tighten their belts, rein in excess credit and spending, and steer clear of unsecured borrowing.
"The figures also indicate that demand for lending from small businesses is stalling as small and medium enterprises (SMEs) continue to delay investment decisions and require less credit from the banks.
"It appears that for SMEs it is economic uncertainty, rather than the availability of bank lending, which is the major factor contributing to the UK’s stalling economic recovery."