The Bank of England’s latest survey showed lenders tightened household credit availability in Q3, while defaults on total unsecured lending increased. Credit-card defaults also rose, highlighting growing pressure on household borrowers despite expectations that credit availability may improve slightly in the next quarter.

The Bank of England’s Q3 credit survey, published on 8 October, showed lenders reporting reduced availability of secured and unsecured household credit in the three months to end-August. Demand for house-purchase loans and remortgaging also fell, while unsecured household loan defaults increased. Lenders expected a slight improvement in household credit availability over the next three months. The survey was conducted between 17 August and 4 September, so it does not capture developments after that period.