THE flow of lending to UK businesses improved markedly in August but still remained in negative territory, the Bank of England said yesterday. <br /><br />Its monthly Trends in Lending report also showed that, following robust capital market issuance over recent months, net funds raised by UK businesses weakened in August.<br /><br />The report said repayments outstripped new lending to businesses in August. Also, new mortgages became slightly more expensive in August with a typical rate of 4.3 per cent, up from 4.2 per cent in July. A lack of appetite for credit card borrowing and loans continued. <br /><br />Lenders said that they had not seen any increase in demand for car loans, despite the pick-up in car sales driven in part by the scrappage scheme, the report revealed.