Demand for mortgages expected to increase "significantly" again in the third quarter of 2013

Demand for secured lending for house purchases is expected to increase significantly in the third quarter of 2013 along with increased availability of secured and unsecured credit to households, according to the Bank of England’s latest credit conditions survey. This would follow a strong increase in both credit availability and demand in the second quarter of the year.

Defaults on secured loans to households were little changed over the last three months, while defaults on unsecured loans fell slightly in the second quarter.

In the corporate sector, the overall availability of credit increased in the second quarter, with the most significant increase coming for larger companies. Corporate demand for credit across firms of all sizes went up the second quarter, and is expected to rise significantly for large businesses and remain the same for small companies over the next three months.

The default rate for small businesses was reported to have increased significantly in the second quarter, although defaults for medium sized and larger companies were little changed.