From The BBC:
The number of people defaulting on loans has risen and is expected to increase in the coming months, a Bank of England survey has found.The poll of banks and building societies found more people were unable to repay mortgages and other debts. The state of the economy, including rising unemployment, was key to the rising figures. The poll also found that lending to businesses had not risen as fast as had been expected in the past three months. But financial institutions said that they expected the availability of credit to businesses to rise in the next three months. The Bank’s Credit Conditions Survey tests the financial climate. ‘Not encouraging’Householders were likely to be offered, and demand, more credit which was secured on their homes in the next three months, the Bank found.
However, the opposite was true for unsecured loans – such as credit cards and personal loans – which was expected to be squeezed slightly over the next quarter. Vicky Redwood, of Capital Economics, said th…
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