Lenders have reported the UK's biggest increase in mortgage defaults since 2009 - and they expect worse to come this autumn.
The Bank of England’s latest monthly Credit Conditions Survey, just released, found mortgage defaults in the three months to the end of May soared to 30.9 on its index, up from just 14 in the first quarter of this year.
The new figure is the highest in the survey since the Global Financial Crisis in mid-2009, when the total hit 60.
The survey, carried out between May 30 and June 16, asked lenders to report changes in the second quarter of 2023, compared to the previous three months, with a score then assigned based on lenders’ responses and market share.
There was more bad news in the survey.
Lenders also expect demand for mortgages to drop sharply in the next quarter, while the availability of mortgages and other non-mortgage credit to households is also likely to fall.
"Lenders reported that losses and default rates on secured loans to households increased in Q2, and were expected to increase in Q3” the report says.
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