The survey reported that banks expect mortgage lending to further increase over the next three months, with the Funding for Lending scheme cited as a contributing factor for the boost.
The scheme was announced in June and opened for business on 1 August, with five of the six biggest banks signing up. The scheme offers banks and building societies cheap finance if they increase lending to businesses or households.
The credit conditions survey added that the availability of credit to the corporate sector was reported to have remained unchanged for firms of all sizes in the third quarter. It was expected to remain unchanged in the final quarter.