Banks expect further fall in lending

The Bank of England’s latest credit conditions survey also reports falling demand from consumers for both mortgages and secured credit. The survey of lenders found a net balance have reduced the amount of credit they are prepared to make available by more than expected over the past three months. Lenders also expect further reductions in credit availability during the final quarter of 2008. However, borrowers looking for loans of 75% LTV or less have seen a slight rise in credit availability, due to the larger safety net these borrowers have against further falls in house prices. “Lende...