Cost of living pressures to drive significant rise in UK credit card borrowing
Demand for consumer credit expected to climb 7.9% this year and 5.5% in 2023 as cost of living pressures bite; a reversal of the pandemic-driven 12% fall over 2020-21. The loan loss ratio is also forecast to rise 1.7% in 2022 having averaged 1.3% from 2015-19. Mortgage lending forecast to rise 3.8% this year and 3.3% in 2023, down from 4.3% in 2021 – the slowing growth rate largely reflecting stretched affordability, escalating interest and mortgage rates and the rising cost of living. Net bank lending to UK businesses expected to grow by 2.8% in 2022 and 3.3% in 2023 as markets revert to pre-pandemic economic conditions, although geopolitical uncertainty and supply chain disruption likely to depress firms’ short-term appetite to invest.
4 May 2022 London GB