Bank of England sees mortgage demand accelerating

UK Banks are gearing up for increased demand for mortgages in the coming months, the Bank of England's latest credit consumer survey showed.

The survey of British banks showed that demand for mortgages had slowed in the first three months of 2015, compared to the same period in the previous year, but that banks expected demand to pick up in Q2.

It is the latest sign that the UK's wondering housing market could gather some speed in 2015.

However, UK banks expect lending to companies to remain flat in the second quarter, extending a flat spell in corporate lending that began a year ago.

Demand for credit card lending fell in the first three months of the year, the BofE survey showed, following a record-breaking increase in the final three months of 2014.

The UK's central bank has long maligned the lack of credit being made available to businesses as a key hindrance to economic growth in the country.

Banks now expect demand for credit from small businesses to jump in the second quarter, the survey showed.

The Bank's data showed that net lending to businesses increased by £440m in February, a dramatic decrease from the £1.8bn recorded in January.