UK lenders see mortgage default rates rising
More UK households have defaulted on their mortgages in the last quarter, new Bank of England data shows, and the situation is likely to worsen in the run-up to Christmas.
UK lenders have reported that the default rates on secured loans to households increased in the third quarter of this year, and are expected to increase again in the final quarter (October-December).
This is the seventh quarter in a row in which lenders have reported a rise in default rates on secured loans, as this chart shows:
However, default rates for total unsecured lending slightly decreased in the last quarter, helped by a drop in defaults on credit cards.
Karim Haji, global and UK head of financial services at KPMG, says:“These latest figures suggest that many households are still struggling in the current environment.
Unsecured lending demand, while stable, remained elevated compared to the first quarter of the year. A fall in default rates for unsecured lending is an encouraging sign and reflects the cautious approach to credit being taken by households.
Source/Read More The Guardian