BBA statistics director, David Dooks said:
"Mortgage lending remains subdued, with only remortgaging on an upward trend, as borrowers lock into lower rate products currently available. Household demand for unsecured credit is also weak, as people continue to cut back on borrowing and build up deposits.
"With repayments by businesses exceeding new borrowing business lending is still contracting but at a slower rate suggesting that businesses’ adjustment to their trading environments may be stabilising."
John Mawdsley, chief executive officer of Omnii Solutions, said:
“Potential borrowers are caught between the devil and the deep blue sea. On the one hand, their household finances have been ransacked by inflation, and on the other, they are constrained by a lack of higher LTV’s.
"It’s a lose-lose situation for the would-be borrower. By extension, that’s nothing but bad news for brokers.
"Lending will continue to meander along in its suppressed state until the macro economic problems affecting the mortgage market begin to sort themselves out.
"Both lenders and borrowers are understandably cautious. Today’s budget is unlikely to provide any relief, and only time will tell whether the Chancellor’s growth strategy is anything more than empty rhetoric.”
