UK lenders expect rise in mortgage and loan defaults

FILE PHOTO: Skyscrapers in The City of London financial district are seen during sunrise in London, Britain, September 14, 2020. REUTERS/Hannah McKay/File Photo

LONDON (Reuters) – British lenders expect the rate of defaults on mortgages and consumer loans to rise during the final three months of this year, and plan to raise interest rates and tighten lending conditions, a Bank of England survey showed on Thursday.

The BoE’s quarterly Credit Conditions Survey also reported that lenders expected demand for mortgages to stabilise in the fourth quarter, after rising in the previous three months, while consumer loan demand was seen increasing.