A research has revealed that the availability of loans will become difficult in the third quarter of this year as the lenders are finding it tough to get funds.

The balance of 11.4% banks in the region reveals that they will not lend more in the coming three months. Bank of England's Credit Conditions Survey reveals that the reason behind it is that they are expecting a contraction in the wholesale funding market.

The lenders are not planning to increase their market share and this has caused a less hike in the availability of loans in the second quarter.

Availability of credit for ventures has witnessed a hike of less than 1% due to apprehensions regarding the condition of the financial system.

The survey reveals that the banks will reduce the mortgage lending in the coming three months because of more funding costs .However, the lending for businesses and unsecured consumer lending will be raised.

This result has come regardless of the anticipation that demands for loans will increase slightly in the coming months. However, consumer credit will remain steady while the large firms are not expected to have much demand for loans.