CML 'encouraged' by BoE credit survey

The CML were pleased with some 'noticeably positive' findings including lower secured loan defaults than anticipated and strengthening demand within the housing market.

It also highlighted that a small proportion of lenders are anticipating buy-to-let demand to reduce, with a more substantial proportion expecting demand for 'other' house purchase lending to reduce.

In addition, lenders broadly expect the availability of secured credit to remain about the same, and the demand for it to increase, over the next three months.

Michael Coogan, CML director general, commented: "Although this survey was undertaken before the Northern Rock situation emerged, the funding constraints arising from the slowdown in the interbank lending market were already apparent. Against this backdrop, it is encouraging to see that the lenders contributing to the Bank survey largely expect the supply of mortgage lending to hold up."