Lenders expect to reduce the amount of credit given to households, tighten lending criteria – and charge more for the loans, says Bank report.Lenders expect to reduce the amount of credit they give to households in the second quarter of the year in a move that economists warn is likely to curb any economic recovery.
As the Bank of England's quarterly credit conditions survey showed that lenders intended to cut credit to households in the next three months, there was also an unexpected fall in mortgage approvals.
Home loan approvals fell to 48,986, their lowest in eight months, in February. This was analysts' expectations and prompted warnings from mortgage brokers that conditions resembled the "dark days" of the banking crisis in 2008. Read More
