- Lenders reported that they had reduced the availability of secured credit to households in the three months to mid-June. Lenders’ expectations for house prices were reported to have been a factor contributing to this tightening. They expected a further decline in secured credit availability over the next three months.
- Unsecured credit availability to households was reported to have been reduced and lenders anticipated a further similar decrease in unsecured credit availability.
- Lenders reported that corporate credit availability had been tightened over the past three months, in line with their expectations in the Q1 survey. A further reduction in corporate credit availability was anticipated over the next three months.
- Demand for secured lending for house purchase was reported to have declined by more over the past three months than lenders had anticipated in Q1. Lenders expected that demand for secured lending for house purchase would fall further.
- Demand for credit by private non-financial corporations had fallen over the past three months. However, private non-financial corporations were reported to have been drawing down more on their pre-existing committed lines of credit.
Terms and conditions
- Overall spreads on secured lending to households were reported to have increased over the past three months, in line with lenders’ expectations in the Q1 survey. Over the next three months, lenders anticipated that spreads would remain broadly unchanged.
- Lenders reported a further significant widening in spreads on corporate lending. They expected spreads to increase further.
- Default rates, and losses given default, on secured lending to households were reported to have risen over the past three months, by slightly more than lenders had expected in Q1. Lenders anticipated a further increase in both default rates and losses given default.
- Over the latest three months, lenders reported that default rates, and losses given default, on lending to private non-financial corporations had increased broadly as expected three months ago. A further rise in default rates, and losses given default, was anticipated over the next three months.