Credit Conditions Survey - 2014 Q4

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 06 January 2015

The 2014 Q4 survey was conducted between 10 November and 1 December 2014.


  • The availability of secured credit to households was reported to have risen slightly in the three months to early December 2014, having fallen significantly in Q3. Lenders expected availability to be unchanged over the next three months.
  • Lenders reported that the availability of unsecured credit to households increased in 2014 Q4, with a further slight increase anticipated in 2015 Q1.
  • The overall availability of credit to the corporate sector was unchanged in Q4 according to lenders, and was expected to remain unchanged in Q1.


  • Demand for secured lending for house purchase was reported to have decreased significantly in 2014 Q4, compared with lenders’ expectations of a rise. Lenders expected demand to increase slightly over the next three months.
  • Lenders reported that demand for both credit card lending and other unsecured lending products, such as personal loans, increased significantly in Q4. Further increases in demand were anticipated in 2015 Q1.
  • While demand for credit from small businesses was reported to have decreased in Q4, demand from medium-sized companies increased significantly. Demand for credit from large corporates increased slightly in 2014 Q4.

Loan pricing

  • Lenders reported that overall spreads on secured lending to households — relative to Bank Rate or the appropriate swap rate - narrowed significantly in 2014 Q4. And spreads were expected to narrow further in 2015 Q1.
  • Spreads on other unsecured lending products narrowed significantly in Q4, but were expected to remain unchanged in Q1.
  • Spreads on lending to small businesses were unchanged in Q4, while spreads for medium-sized companies and large corporates narrowed significantly. These trends were expected to continue over the next three months.


  • Lenders reported that default rates on secured loans to households fell significantly in 2014 Q4, and a further significant fall was anticipated in 2015 Q1. Losses given default on secured loans to households also decreased in Q4 and were expected to decrease slightly further in Q1.
  • Default rates on credit card lending fell significantly in Q4, while default rates on other unsecured lending were unchanged. Losses given default on credit card lending rose significantly in Q4, and rose slightly on other unsecured lending.
  • Default rates on corporate lending fell in Q4, particularly on lending to small businesses. Losses given default were unchanged in Q4 for small businesses, but fell for medium-sized companies and large corporates.

PDFCredit Conditions Survey - 2014 Q4

Other Credit Conditions Surveys