KPMG comments on the Bank of England's Q4 Credit Conditions survey

Q4 2024 marked the eighth quarter in a row where lenders reported a rise in mortgage defaults

Q4 2024 marked eighth quarter in a row where lenders reported a rise in mortgage defaults

Karim Haji, Global and UK Head of Financial Services at KPMG, comments on today’s Q4 Credit Conditions survey from the Bank of England:

“These latest figures mark the eighth quarter in a row where lenders have reported a rise in mortgage defaults. This points to the financial strain on households as many are hit by higher mortgage rates in an environment which is still challenged by high cost of living and uncertain future interest rates.

“Against a backdrop of weak UK growth and continued inflationary pressures, we may see defaults continue to rise in the months ahead. Recent shifts in expectations on when and by how much interest rates are likely to fall mean households might expect more financial pain for longer.

“While some other areas of credit remain stable, such as default rates on unsecured lending which fell, the rise in mortgage defaults highlights ongoing economic uncertainty and suggests that many households are still feeling the financial pinch.

“The slight rise in unsecured lending suggests households continued to struggle with cost-of-living challenges in the run up to Christmas, which can be an expensive period for many.

“Lenders need to take a cautious approach to credit applications considering these latest default rates and offer the necessary support to those who have struggled financially over the festive period.”

 

-ENDS-

 

For media enquiries, please contact:

Gerard Swinley, Corporate Communications

Tel: +44 (0) 20 3078 3948
Mob: +44 (0) 7510 375540
Email: 
gerard.swinley@kpmg.co.uk

KPMG Press Office
Tel: +44 (0) 207 694 8773

 

Notes to Editors:

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

Connect with us

Save, Curate and Share

Save what resonates, curate a library of information, and share content with your network of contacts.