London Daily

Focus on the big picture.
Wednesday, Apr 02, 2025

Rise in loan defaults but 'no signs' of wider credit crunch

Rise in loan defaults but 'no signs' of wider credit crunch

The survey findings come despite fears that recent turmoil in the global banking sector could lead to a squeeze on credit beyond the housing market, which has been showing signs of a slowdown.
Household loan defaults are on the up and mortgage supply is set to weaken - but there appears to be little sign of a wider tightening in credit, according to a survey of lenders.

Default rates for both secured and unsecured loans saw a rise in the three months to the end of February, the Bank of England's Credit Conditions Survey reported.

Banks and building societies also forecast such defaults would "increase further" in the three months to May.

Meanwhile, the availability of secured credit was unchanged over same period, although lenders cautioned they expect it to become weaker by the time of the next survey.

However supply of consumer credit is expected to increase slightly in the next quarter, while availability of credit to the corporate sector is expected to remain unchanged.

The survey findings come despite fears that recent turmoil in the global banking sector could lead to a squeeze on credit beyond the housing market, which has been showing signs of a slowdown.

Liz Martins, an economist at HSBC, said: "Despite all the monetary tightening and the turmoil of March, there is not too much evidence of banks pulling back."

However she added that the survey ran from the end of February to 17 March, so some responses would have predated Silicon Valley Bank's collapse and the takeover of Credit Suisse.

Groups such as the Financial Conduct Authority have recently expressed concern that thousands of mortgage borrowers could face payment difficulties due to pressures on household finances.

The survey, which is carried out quarterly, does not necessarily reflect the Bank's own views on credit conditions.
Newsletter

Related Articles

0:00
0:00
Close
Europe Pursues Digital Autonomy Amidst Transatlantic Strains
OpenAI Lands Unprecedented $40 Billion Funding.
Charity Chairwoman Accuses Prince Harry of Bullying and Harassment
DOGE revealed that USAID provided $84 million to the Clinton Foundation. Of this amount, $3 million was spent on Chelsea Clinton's wedding, and $10 million was used to acquire a lavish mansion.
The State Department has announced the formal closure of USAID.
Apple's Innovation Deficit: Falling Behind in AI and Foldable Technology as Chinese Developments Progress
President Trump Proposes Military Intervention to Obtain Greenland
Passenger Taken into Custody After Engaging in Masturbation on SWISS Air Flight
Barcelona player Dani Alves found not guilty of rape accusations.
PUTIN'S LIMOUSINE DETONATES—SECURITY CHAOS ENSUES
French Foreign Ministry Denounces U.S. Interference in Corporate Diversity Initiatives
Copyright Issues Emerge as AI-Generated Studio Ghibli Images Gain Popularity
This is what we refer to as CREATIVITY.
Removing the Political Opponent Means Dismissing the Remnants of Turkey's Economy.
Malaysia Strengthens Semiconductor Regulations in Response to U.S. Pressure to Restrict AI NVIDIA Chip Exports to China.
OpenAI Launches New Image Generation Tool for ChatGPT
Ex-FIFA President and French Football Icon Acquitted of Corruption Allegations
National Security Advisor Mike Waltz Under Investigation After Journalist Added to Secret Military Chat
Ex-Business Partner of Hunter Biden Discusses Possible Pardon from President Trump
U.S. Attorney General Announces Task Force to Prosecute Government Fraud
American Brands Face Consumer Boycott in Europe Amid Escalating Trade and Political Tensions
White House Investigates Security Breach After Journalist Accidentally Added to Secret Yemen Strike Chat
Samsung Executive Han Jong-hee Dies Suddenly Amid Ongoing Corporate Challenges
German President Frank-Walter Steinmeier has just signed off on a national debt hike to fast-track Germany’s militarization
Heathrow Airport Restarts Services as Investigation into Power Outage Commences
Pope Francis Released from Hospital Following Pneumonia Treatment
Pope Francis Appears in Public for the First Time in Five Weeks After His Hospital Stay
Usha Vance to Head U.S. Delegation During Greenland Visit Amid Discussions on Annexation
Trump suggests US could join British Commonwealth if offered by King Charles
Elon Musk Files Lawsuit Against Jamaal Bowman for Defamatory Remarks
European Countries to Boost Defense Expenditures in Response to Changes in U.S. Assistance
Iconic Boxer George Foreman Dies at 76
European Airline Shares Fall Following Disruption from Heathrow Power Outage
Pope Francis Set to Leave Hospital Following Recovery from Pneumonia
Thousands Take to the Streets in Amsterdam to Protest Racism and Fascism
Revealing the Electromagnetic Characteristics of the Great Pyramid of Giza
President Trump Cancels Security Clearances for Notable Political Figures.
The Development of China's Automotive Sector
Netanyahu Dismisses Shin Bet Chief Amid 'Loss of Trust' and 'Qatargate' Corruption Investigations Involving Netanyahu's Advisors
UK Conservatives Remain Optimistic Despite Polling Challenges
Labour MPs Unveil Initiative to Combat Harmful Influencers and Advocate for Healthy Masculinity
Miami Beach Mayor Cancels Plan to Expel Cinema Following Documentary Showing
Thousands of Drones Illuminate the Sky in Honor of Trump.
Leaders of the US and Ukraine Participate in Constructive Call During Ongoing Conflict
Elon Musk's X Experiences Valuation Recovery to $44 billion.
UK Government Set to Implement Major Budget Cuts in Spring Statement
US Federal Reserve Downgrades Economic Growth Outlook Due to Tariff Uncertainty
EU Claims US Tech Giants Have Violated Digital Regulations
Canada Denounces the Execution of Its Citizens in China Amid Rising Tensions
European Union Moves Toward Joint Debt for Military Spending
×