All the latest Financial News

We’ll bring you all the latest news from the financial sector, keeping you right up-to-date with everything you need to know regarding loans, financial products and services as well as anything else that might interest you.

News Snippet: BoE Credit Conditions Survey

In its efforts to maintain financial and monetary stability, the Bank of England conducts a quarterly survey to assess developments in the UK’s credit conditions. Bank and building society lenders participate in the survey, and a detailed report is published on it’s findings. Here is a summary of what was found in this year’s Q3 survey.


Image of the Bank of England

The Bank of England


The main trend that was identified in the recent report is that UK lenders appear to be cutting back on unsecured loans. Unsecured loans are those that are taken without being secured against an asset (like a house or car). These include credit cards and personal loans, and are deemed more risky than secured forms of lending.


What’s happening here?

This cut-back in lending has occurred due to changes in the criteria used by lenders to score individuals on their credit-worthiness. Stricter criteria in this case has led to an increase in the number of credit applications being rejected (i.e. a drop in acceptance rates). At the same time, demand for credit cards and personal loans remained relatively unchanged.

The fall in unsecured consumer lending is forecast to continue into the fourth quarter. Secured lending on the other hand was noted to have increased slightly, particularly in the mortgage sector.

Use our award winning technology to search our panel of lenders for some of the most competitive rates