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This illustration of British five-pound banknotes was captured on November 14, 2017. REUTERS/Illustration/File photo/Benoit Tessier (Reuters) – LONDON, July 15 (Reuters) – According to a Bank of England survey released on Thursday, British lenders forecast a record increase in the supply of unsecured credit to households over the next three months as the country’s economy recovers from its current recession. Lenders also anticipate to boost the availability of new mortgages, despite the fact that demand is expected to reduce, while business lending is expected to remain steady. The findings are based on a quarterly survey of British banks and building societies performed from June 1 to June 18, and they add to signals of a quick rebound from the coronavirus outbreak. Consumer borrowing in the United Kingdom fell during the lockdowns as consumers had less opportunities to spend and millions of workers who would have been laid off received furlough assistance payments. Although other figures issued on Thursday by the Office for National Statistics revealed the first monthly dip in credit and debit card spending since January, previously disclosed BoE data for May showed the first net gain in consumer borrowing since August. find out more The anticipated increase in unsecured credit availability to households over the next three months was the largest since the poll began in 2007. Credit card borrowing and other types of unsecured debt have experienced an increase in demand, with credit cards offering longer interest-free periods to tempt borrowers. Default rates on unsecured loans have fallen in recent months, but are projected to climb again soon. David Milliken contributed reporting, while Kate Holton and William Schomberg edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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