More households expected to default on mortgages and other loans
The findings were made following a survey of banks and building societies by the Bank of England.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.More households are expected to have defaulted on mortgages and other loans by the end of November, according to a Bank of England survey of lenders.
The Bank’s credit conditions survey asks banks and building societies about trends they have seen recently and their expectations for the three months ahead.
The latest survey was carried out between August 31 and September 17.
Lenders were asked to report changes in the three months to the end of August as well as their predictions for September to November.
While mortgage default rates had decreased in the previous three months, they are expected to increase in the coming quarter, the survey found.
Default rates on other types of loans, including credit cards, are also tipped to increase in the next three months.
More small and medium-sized businesses are also expected to default on loans in the coming quarter, although lenders predicted default rates will remain unchanged for large firms over the same period.
The Bank of England carries out the survey as part of its role in maintaining financial stability and the results do not necessarily reflect the views of the Bank.
The findings come as concerns grow over households facing a winter storm of bill hikes, including for energy, as well as other squeezes on their income.
The survey also found that lenders expect the availability of mortgages and other loans to households to increase by the end of November.
Mortgage demand from home-buyers is predicted to decrease over the next few months, but re-mortgaging demand is expected to rise.
Overall, corporate credit availability is expected to remain unchanged in the next few months.
Demand for business loans is predicted to increase for large businesses and rise slightly for small and medium-sized firms over the same period.