However the CML has claimed the data contained in the Bank's credit conditions survey shows "a clear mismatch between expectations at the time of the last survey and actual experience."
This, the CML claims, emphasises just how volatile the market has been of late and supports the Council's own forecast for the coming twelve months of a slower market in which 'the supply-side funding constraints risk tipping into a potentially significant reduction in consumer demand for lending.'
It was also noted that the default rate on secured loans had not proved to be as bad as lenders feared, although the level of loss has indeed been higher where defaults have occurred.
Overall, the CML believes that demand for secured lending has held up but that supply has been constrained.
Bob Pannell, CML head of research, commented: "This survey corroborates other evidence of worsening market sentiment. This may increase the chances of interest rate cuts sooner rather than later if inflation remains subdued. Borrowers should make a New Year resolution to review their finances and plan ahead if they are coming off fixed rate deals later this year."
