This was also reflected in the ECB's Bank Lending Survey, which showed that of all the major eurozone economies, only Germany's saw a notable increase in lending, driven largely by new mortgages.

BBC: Spain's recession worsens in the fourth quarter

Loan growth is wilting and a survey by the European Central Bank (ECB) suggests that lending conditions are becoming stricter.

ECONOMIST: The euro-area economy

The Bank of England's Credit Conditions Survey found that the Funding for Lending Scheme, launched at the start of August 2012, was now helping to increase the flow of money to borrowers.

BBC: Mortgage funds to rise significantly, Bank of England says

On Thursday, a survey of lenders by the Bank reported that FLS had encouraged more lending in the final three months of 2012, and that there would be a significant further increase in 2013.

BBC: For Sale signs

However, the Bank of England's Credit Conditions Survey, also published earlier in January, found that the Funding for Lending Scheme, launched at the start of August 2012, was now helping to increase the flow of money to borrowers and make mortgages more available.

BBC: House prices will change little in 2013, Halifax says