Consumers planning to apply for secured loans will find that they are increasingly difficult to come by, it has been revealed.
The Bank of England's quarterly Credit Conditions Survey asks lenders about their expectations for the coming months as well as their habits over the previous three.
And it has shown that the availability of secured loans was reduced by more than was expected in the third quarter of the year, with lenders predicting further declines to come.
But in the same period demand was also found to have decreased sharply, suggesting that less people are seeking loans in order to take out mortgages.
Unsecured loans have also dipped in availability - although these have dropped in line with what was predicted - and lenders expect this to continue towards the end of 2008.
The news followed yesterday's announcement by Nationwide that the average house price fell by 1.7 per cent last month, now standing at £161,797.
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