Banks expecting sharp jump in the demand for mortgage loans

Julian Harris
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BANKS are expecting to provide more credit for mortgages and business loans in the coming three months, a closely-watched survey revealed yesterday.

The Bank of England’s latest credit conditions survey, which is released every quarter, said that the availability of secured credit for households edged up in the opening three months of the year – the seventh consecutive quarterly rise in this measure.

Demand for home purchase loans is “expected to increase significantly in the second quarter,” the survey also said.

Meanwhile the availability of loans to businesses increased for a sixth consecutive quarter at the start of the year, with a further lift expected in quarter two.

The Confederation of British Industry (CBI) welcomed the findings, yet added that it hopes lending will be broadly-based.

“Confidence is beginning to translate into increased demand for growth finance across firms of all sizes,” said the CBI’s Matthew Fell.

“But the improving conditions for larger businesses now need to filter through more widely. Banks have a crucial role to play in the economic recovery and must step up to the plate and support lending to smaller firms too.”