Bank of England predicts rise in loan defaults
3 Jul 09
The number of people defaulting on loans has risen and is expected to increase in the coming months, according to the Bank of England’s latest survey
Its poll of credit conditions for the second quarter of 2009 found that more people were unable to repay mortgages and other debts.
The poll also found that lending to businesses had not risen as fast as had been expected in the past three months.
But financial institutions said that they expected the availability of credit to businesses to rise in the next three months.
Householders were likely to be offered, and demand, more credit which was secured on their homes in the next three months, the Bank found.
However, the opposite was true for unsecured loans - such as credit cards and personal loans - which was expected to be squeezed slightly over the next quarter.
To download the Bank of England’s full Credit Conditions survey, click here