Lenders Forecast Rise in Credit Card Defaults Ahead of Winter, Mortgage Outlook Stabilizes

Lenders have signaled that credit card defaults are likely to rise in the three months ending in November, reflecting growing consumer pressure. Mortgage default rates, which edged lower in the three months to August, are expected to hold steady, and corporate loan defaults are projected to remain unchanged. The Bank of England’s Credit Conditions Survey, carried out between August 17 and September 4, forms the basis for these forecasts, though more recent developments are not captured.

Mortgage availability, which fell to August, is predicted to increase modestly by November, alongside a slight rebound in demand for house-purchase mortgages and remortgaging. Adam Butler of the debt-help charity StepChange warned that higher energy prices and rising interest rates could further strain households, already seeing a 20 % rise in clients. Propertymark chief Nathan Emerson expressed optimism that improved access to secured lending could boost confidence in the housing market as the year ends.