LONDON, July 13 (Reuters) - British banks reported a surge in demand for mortgages in the second quarter, and expected it to remain robust over the summer, a Bank of England survey showed on Monday.
The central bank's quarterly Credit Conditions Survey also showed demand for loans from small and big businesses increased and was expected to rise in the third quarter too.
Banks reported the strongest demand for mortgages since the end of 2013.
Stricter controls, and the impact of a run-up in house prices, reduced mortgage lending for much of last year. But mortgage approvals have picked up in most months this year, according to BoE data.
While the survey showed availability of corporate lending was little changed over the last three months, lenders said they expected this to improve in the third quarter.
Demand for lending from small business hit its highest level in a year, and respondents predicted this would continue to rise modestly in the third quarter.
The BoE has long highlighted the lack of credit for companies as a hindrance to Britain's economic recovery.
Credit card lending demand was little changed in the second quarter, having fallen at the start of the year, but banks expected this to recover over the next three months.