Banks in the UK are still struggling to grant secured loans, it has been suggested.
The Liberal Democrats have called for more to be done to ensure financial institutions pass on the government bail-out, as many are found to be keeping the capital.
According to the party, secured lending has experienced its largest fall since the Bank of England began recording data 15 years ago.
The total figure lent to individuals and housing associations was found to have dropped by £22.6 billion over the last three months.
And with the government's assistance being granted on certain conditions, the Liberal Democrats noted that many banks are reneging on their deals.
"If they continue to hoard capital, refusing to lend to viable business and individuals, we are doomed to head into an ever deeper recession," they stated.
The party also noted that loans rates have risen by average of 1.24 per cent over the last year, despite Bank of England making cuts to the base rate.
Figures from the Council of Mortgage Lenders have shown that mortgage lending rose by seven per cent in October.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.