As banks predict rise in defaults, unsecured borrowing is surging

The central bank’s quarterly Credit Conditions Survey, shows that demand for credit card lending was also expected to increase over the next quarter.

Lenders reported that demand for mortgage lending increased in Q4, which is then expected to decrease in the first few months of 2021.

Default rates on secured loans to households remained unchanged in Q4, but lenders expect this to increase in Q1.

Lenders told the Bank of England they expect default rises across mortgages, unsecured loans and lending to businesses “of all sizes” in the first three months of 2021.

Source: Credit Strategy
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