“Consumer demand is broadly in line with what lenders expected heading in Q2 - particularly continued appetite for credit cards and remortgaging, as households adjust to ongoing cost pressures.
“Encouragingly, default rates have remained stable, and credit card defaults even improved earlier in the quarter. That reflects a degree of resilience, but an uptick in repossessions points to underlying strain in some areas.
“As we move into the second half of the year, cautious optimism is warranted but lenders must remain alert to changes in affordability and borrower behaviour.”
-ENDS-
About KPMG
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
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 275,000 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.