United Kingdom lenders cutting back on unsecured loans, says Bank

Cornelia Mascio
Октября 12, 2017

The survey showed the net balance of lenders' expectations for the availability of unsecured lending to households over the next three months fell to -28.6 from -16.2, indicating the sharpest fall since the fourth quarter of 2008, when the United Kingdom economy contracted by 2.2%.

British lenders are planning the biggest reduction in the availability of consumer lending since late 2008, when the economy was in the depths of its worst post-war recession, a Bank of England survey showed on Thursday.

United Kingdom banks and building societies have told the Bank of England they expect to tighten up on non-mortgage lending to households in the coming three months.

The Bank of England said lenders reported that "unsecured credit to households decreased in Q3" and that they "expected a significant decrease in Q4".

The criteria for granting both credit card and other unsecured loans was also tightened during the period.

However, lenders expected demand for loans for capital investment in businesses to fall at the fastest rate since the third quarter of 2011.

Mortgage lending remained stable amid stiff competition in the low-rate environment, with an annual growth rate of 3.2% in August and lenders reporting demand was little changed during the second and third quarters.

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