Britain’s biggest high street lenders expect the sharpest rise in defaults on unsecured lending since 2009, according to a
Bank of England survey, as households come under growing pressure amid the cost of living crisis.
The figures from Threadneedle Street show banks expect a marked rise in the number of people who fail to meet repayments on credit cards, loans and other forms of unsecured borrowing over the next three months.An index of lenders’ expectations for defaults in the first quarter of 2024 showed a reading of +31.7 on the Bank’s credit conditions survey. If the forecasts are accurate, it would mark the sharpest quarterly rise in defaults since late 2009 during the global financial crisis.