UK lenders expect more defaults, less mortgage lending – BoE

© Reuters. FILE PHOTO: The Bank of England is seen in the City of London, Britain, February 14, 2017. REUTERS/Hannah McKay

LONDON (Reuters) – British lenders expect loan defaults to rise over the coming months and also plan to rein in mortgage lending by the greatest amount since the early days of the COVID-19 pandemic, a Bank of England survey showed on Thursday.

The BoE’s quarterly credit conditions survey showed lenders expect more defaults on mortgages, unsecured consumer lending and business loans in the three months to the end of May, although outright losses on mortgage lending were expected to remain stable.