Lenders expect improvement
Lending conditions are improving, according to a survey from the Bank of England.
Over the last three months, the availability of secured loans tightened further as banks became more risk-averse and house prices continued to fall, according to the Bank of England's credit conditions survey.
However, lenders are feeling more optimistic about the future, the report noted.
"Credit availability to households and corporates was expected to improve over the next three months, associated with an improvement in the cost and availability of funds," the Bank of England said.
Over the first quarter, unsecured credit reduced by less than expected, while loans to businesses rose.
Default rates for both households and businesses rose over the past three months.
Lenders expect a further increase in losses due to defaults over the next quarter, the survey found.
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