Demand for secured lending from UK households is set to rise in the third quarter, the latest Credit Conditions Survey from the Bank of England showed Thursday. Lenders reported that demand for secured lending decreased in the second quarter.
Similarly, demand for unsecured lending declined in three months ended May but is set to rise in the coming three months.
Meanwhile, demand for loans from all sizes of businesses increased in the second quarter but was forecast to fall in three months ended August.
The availability of secured credit to households in the three months to May decreased. Lenders expected the availability of secured credit to decrease further over the next three months.
Lenders reported that the availability of credit to the corporate sector increased for all business sizes in the second quarter but it is expected to increase only slightly in the third quarter.
Further, the survey showed that the default rates on secured loans to households increased slightly in the second quarter and is expected to rise in the third quarter.
The default rates on loans to corporates also increased in the second quarter and it is forecast to climb in the next quarter.