“After a strong start to the year, mortgage activity now looks mixed, with some signs of easing demand for house purchases even as remortgaging remains robust. This suggests the market may be pausing for further clarity on rate cuts rather than an abrupt downturn in buyer interest.
“Unsecured lending demand looks to be levelling off after several quarters of growth. With household budgets still under pressure, consumers appear to be holding back on additional borrowing where they can.
“Defaults remained stable across unsecured lending, indicating that borrowers are still coping despite the higher-for-longer rate environment. But a small rise in the losses lenders face when defaults occur underlines the pressure some households continue to feel.
“With the recent energy price cap rise and inflation still elevated, lenders will be watching closely to ensure affordability pressures don’t translate into wider credit stress.”
-ENDS-
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