Street Calls of the Week
Investing.com -- The Bank of England’s latest Credit Conditions Survey revealed on Thursday that credit availability to UK households and businesses increased in the third quarter of 2025, with further growth expected in the coming months.
According to the survey conducted between September 1-19, lenders reported that secured credit availability to households increased in the three months to end-August and is expected to continue rising through November. Unsecured credit availability showed a slight increase and is also projected to grow modestly in Q4.
The corporate sector saw slight overall increases in credit availability during Q3, with small and medium-sized businesses experiencing the most significant improvements. Lenders expect this trend to continue into the fourth quarter.
Demand patterns varied across lending categories. Secured lending demand for house purchases remained unchanged in Q3 and is expected to stay flat, while remortgaging demand increased and is forecast to continue growing. Overall unsecured lending demand was unchanged, though demand for other unsecured lending (excluding credit cards) increased.
Corporate lending demand showed slight increases from small and large businesses, while medium-sized firms’ demand remained flat. Lenders anticipate slight increases in demand across all business sizes in Q4.
On pricing, spreads on secured household lending narrowed in Q3 but are expected to remain unchanged in Q4. Unsecured lending spreads widened and are projected to continue widening. Corporate lending spreads were unchanged for small businesses but narrowed for medium and large firms.
Default rates on secured household loans decreased slightly in Q3 and are expected to continue falling. Total unsecured lending defaults were unchanged but are forecast to increase in Q4. Corporate default rates remained stable across all business sizes.