Lenders in the United Kingdom reported that the availability of secured credit to households decreased in the three months to November-end 2022 (Q4). Lenders expected the availability of secured credit to decrease further over the next three months to February-end 2023 (Q1), as per the Bank of England (BoE) Credit Conditions Survey – 2022, Q4.
The availability of unsecured credit to households decreased in Q4 and was expected to decrease further in Q1. The overall availability of credit to the corporate sector was unchanged in Q4. Within this, the availability of credit to small and large businesses remained unchanged in Q4, but decreased for medium-sized firms. Overall, corporate availability was expected to slightly decrease in Q1. Demand for secured lending for remortgaging decreased in Q4, but was expected to increase slightly in Q1.
Within the overall figure, demand for both credit card lending and other unsecured lending decreased in Q4. Demand for other unsecured lending was expected to decrease in Q1, while demand for credit card lending was expected to decrease slightly. The net percentage balance for changes in losses given default on secured loans was unchanged in Q4, and was expected to increase in Q1.