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Trends in Lending
April 2015


Trends in Lending
April 2015
This quarterly publication presents the Bank of England’s assessment of the latest trends in lending to the UK economy. It draws mainly on long-established official data sources, such as the existing monetary and other financial statistics collected by the
Bank that cover all monetary financial institutions, and data collections established following the onset of the financial crisis.
These data are supplemented by discussions between the major UK lenders and Bank staff, giving staff a better understanding of the business developments driving the figures, and this intelligence is reflected in the report.(1) The major UK lenders(2) are
Banco Santander,
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Net capital market issuance was positive in this period. Mortgage approvals by all UK-resident mortgage lenders for house purchase rose slightly in the three months to February compared to the previous period. The stock of secured lending to households increased, but the pace of growth has slowed since 2014 H1. The annual growth rate in the stock of consumer credit was little changed in recent months.
Pricing on lending to small and medium-sized enterprises was little changed in the three months to February. Respondents to the
Bank of England’s 2015 Q1 Credit Conditions Survey reported that spreads on new lending to large businesses fell significantly.
The Bank’s series of quoted interest rates on fixed-rate mortgages decreased in 2015 Q1 compared to the previous quarter.
Quoted rates on some personal loans continued to fall.
Contacts of the Bank’s network of Agents noted that credit availability had eased further, including for most small and medium-sized companies. Respondents to the Bank of England’s Credit Conditions Survey expected demand for bank lending to increase significantly from small businesses, increase from medium-sized businesses and be unchanged from large businesses in
2015 Q2. Lenders in the survey reported that the availability of secured credit to households was broadly unchanged and that demand for secured
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