The stock of lending to UK businesses contracted in the three months to May.
Mortgage approvals by UK-resident mortgage lenders for house purchase were broadly unchanged in the three months to May. Total net consumer credit flows remained positive, though subdued.
Spreads over reference rates on new lending continued to narrow for larger businesses in 2011 Q2, according to the Bank of England’s Credit Conditions Survey, though were reported to be broadly unchanged for small businesses.
Quoted rates on fixed-rate mortgages fell somewhat, though spreads over swap rates increased slightly. Quoted rates on credit cards remained broadly unchanged over this period.
Credit availability remained broadly unchanged for businesses and households, according to lenders in the Bank of England’s 2011 Q2 Credit Conditions Survey.
Contacts of the Bank’s network of Agents noted that larger firms continued generally to be able to access bank lending if required, but opportunities for smaller firms remained more variable.
Demand for credit from businesses remained subdued in 2011 Q2 according to most major UK lenders. Demand for secured lending was reported in the Credit Conditions Survey to have increased slightly, with a significant increase for buy-to-let lending.
Demand for unsecured lending remained broadly unchanged.
