British households have found it tougher to obtain credit over the past three months, but banks expect to loosen up on lending towards the end of the year, the Bank of England has said.

The Bank’s credit conditions survey for the three months to the middle of September presented a mixed picture of the cost and availability of credit to households and businesses.

The reduced availability of secured lending – mortgages – for households during the last quarter is unexpected and reflects a deterioration in the cost and availability of banks’ own funds, the survey noted.

Financial Times