Lenders said they lifted the availability of household secured credit in the three months to the end of May and expect to do so again over the coming quarter, according to a Bank of England survey.  

It found that a balance of 23.2 of institutions reported growing conditions for lending in the second quarter, compared to 9.2 in the first three months, says the central bank’s latest Credit Conditions Survey. 

Over the coming three months, a 14.4 balance of lenders expect to approve a rising amount of secured credit applications, compared to an 8.5 balance in the last quarter. 

An improving economic outlook, cited by a 5.5 balance of lenders, was given for the rises, compared to a minus-3.1 balance three months ago.  

Lenders also reported that demand for house purchase loans and remortgaging increased in the second quarter. 

The study says that a 30.9 balance of lenders reported rising homebuying demand in the second quarter, compared to 12.4 in the previous three months. 

But in the third quarter, a minus-18.5 balance expect to see demand fall, against a minus-2 balance in the second quarter. 

The survey adds that a 30.4 balance of lenders saw a rise in remortgaging in the three months to May, compared to a 19.8 balance in the first quarter. 

Institutions expect this to still be in positive territory over the coming three months, citing a 21.4 balance, compared to a 32.7 balance reported in the first quarter.

Around 1.6 million households are expected to refinance to new fixed-rate deals this year, according to UK Finance.