UK Lenders Expect Secured Lending Demand To Remain Unchanged: BoE Survey

(RTTNews) - UK lenders expect demand for secured lending to remain unchanged in the second quarter after rising in the first quarter, the Credit Conditions Survey from the Bank of England showed on Thursday.

Households' demand for unsecured lending is expected to rise in the second quarter, as seen in the first quarter.

Regarding demand for corporate lending, lenders said demand from small and medium-sized businesses are expected to remain unchanged but it is forecast to rise slightly for large businesses.

Banks reported that the availability of secured credit to households rose slightly in the three months to February and it will rise further over the coming three months. About unsecured credit to households, lenders said the availability is set to rise in the second quarter as in the first quarter.

Lenders reported that the overall availability of credit to the corporate sector slightly increased in the first quarter and its availability is expected to be unchanged in the second quarter.

Respondents said default rates on secured loans to households were unchanged in the first quarter, and the rates are likely to be unchanged in the second quarter.

The default rates for total unsecured lending decreased in the first quarter, and were expected to be unchanged in the second quarter.

Banks forecast slight increase in default rates for small businesses, and rates were expected to be unchanged for medium and large businesses in the second quarter.

The survey was conducted among lenders between March 3 and March 21.