Britons in a rush to take out loans despite election uncertaintyComments Off on Britons in a rush to take out loans despite election uncertainty
The Bank of England’s latest Credit Conditions Survey proved that uncertainty over the outcome of May’s vote, which ended in a shock win for David Cameron’s Conservative party, failed to dent Britons’ appetite for spending.
Major lenders including Barclays, HSBC and Lloyds Banking Group said demand for mortgages increased “significantly” during the three months ending May, having fallen in the previous three quarters.
Although demand for credit card lending was unchanged, demand for other unsecured lending products, such as personal loans, was reported to have also increased, albeit “slightly”.
In a further sign of the improved health of the UK economy, banks expect mortgage demand to remain robust over the summer as borrowers are tempter by record low rates.
The survey also showed that demand for lending from small business hit its highest in a year, and respondents predicted this would continue to rise modestly in the third quarter.
The Bank, led by Governor Mark Carney has long highlighted the lack of credit for companies as a hindrance to Britain’s economic recovery.
The report said: “Growth in the stock of lending to UK businesses picked up in 2015 to date. And net finance raised by UK businesses, which also includes funds raised in capital markets, was positive.
“The pick-up in corporate borrowing is likely to reflect the improvement in the availability of credit since late 2012.
“Demand for credit from small and large companies also increased in 2015 Q2, according to respondents to the Credit Conditions Survey. Some surveys suggested that the overall level of demand for bank lending from small and medium-sized enterprises, however, remained subdued.”