The data said that while net lending grew by £1.6bn in the second quarter of the year, banks in the FLS had actually reduced lending by £2.3bn since June 2012. Banks have drawn down £17.6bn from the FLS since it began last August.
The biggest net lenders in Q2 this year were Nationwide, Lloyds, Barclays and Virgin Money.
Mortgage approvals for house purchase – which tend to lead net mortgage lending by a few months – inched higher in Q2, which suggests that lending to individuals is likely to increase further soon.
Commenting on today’s data, Paul Fisher, Executive Director for Markets at the Bank of England, said:
“The FLS is continuing to support lending to the UK economy with a range of indicators suggesting that credit conditions are steadily improving for households and firms, and FLS participants collectively expect net lending volumes to pick up over the remainder of this year.”
