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BoE: Demand For Unsecured Lending To Fall In Q2

UK households' availability of unsecured credit as well as demand is expected to fall in the second quarter, the latest quarterly Credit Conditions survey from the Bank of England revealed Thursday.

Survey showed that demand for unsecured lending was stable in the first quarter, driven by a slight increase in demand for credit card lending along with a slight decrease in demand for other unsecured lending. The demand for credit card lending was expected to fall in the second quarter, while there will be a slight decrease for other unsecured lending, the survey showed.

Banks reported that household demand for secured lending for remortgaging increased notably in the first quarter and expected demand to increase further in the second quarter. Meanwhile, demand for secured lending for house purchase was unchanged in the first quarter, and was expected to fall in next quarter.

Lenders reported a decrease in demand for corporate lending from businesses of all sizes in the first quarter and forecast demand to remain unchanged for small businesses.

On the supply side of lending, survey respondents said the unsecured credit to households was expected to fall further in the second quarter. Meanwhile, availability of secured credit was expected to remain unchanged.

Further, the overall availability of credit to the corporate sector was expected to remain unchanged in next quarter. The first quarter survey was conducted between March 4 and 22.

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