BOE Survey shows lenders expect to tighten supply of unsecured consumer credit

The Bank of England (BOE) released its quarterly report on the UK’s credit conditions and bank liabilities survey for Q1 2017.

The 2017 Q1 survey was conducted between 20 February and 10 March 2017. The results are based on lenders’ own responses to the survey.

Key Findings from the report:

The availability of secured credit to households was reported to be broadly unchanged in the three months to mid-March

The overall availability of credit to the corporate sector was again reported to have been unchanged in Q1

Lenders reported that demand for secured lending for house purchase decreased in Q1

Overall spreads on secured lending to households — relative to Bank Rate or the appropriate swap rate — were reported to have narrowed significantly in Q1, consistent with what lenders had previously expected.

This was the case for spreads on both buy-to-let lending and prime lending.

Net balance of 18.8% of lenders expect to tighten supply of unsecured consumer credit, largest share since Q4 2008

Lenders report weaker business investment exerted significant drag on demand for corporate lending in Q1

Shows lenders expect to tighten supply of unsecured consumer credit