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UK banks report significant fall in unsecured credit availability

Staff Writer |
British banks reported a significant decrease in availability of unsecured credit to households in the first quarter with changing appetite to risk, the latest quarterly Credit Conditions survey from the Bank of England revealed.

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The availability of secured credit to households was unchanged in the three months to mid-March 2018 and expected no change over the next three months to mid-June 2018.

Lenders expected the availability of unsecured credit to remain unchanged in the second quarter.

The overall availability of credit to the corporate sector was unchanged again in the first quarter, with no change expected in the second quarter.

The survey showed that demand for secured lending for house purchase declined significantly in the first quarter, but it is expected to pick up markedly in the second quarter.

Overall demand for unsecured lending decreased in the first quarter, while this is expected to reverse in the next quarter.

Lenders reported no change in demand for corporate lending from businesses of all sizes. The survey was conducted between February 19 and March 9.

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