This report presents the results of the 2024 Q4 survey. The survey was conducted between 18 November and 6 December 2024. The results are based on lenders’ own responses to the survey and are reported as net percentage balances.
The availability of secured credit to households was expected to increase over the next three months to end-February 2025 (Q1)
The availability of unsecured credit to households increased in Q4 and was expected to increase slightly in Q1
The overall availability of credit to the corporate sector slightly increased in Q4. Availability for small and medium-sized businesses increased in Q4, while large businesses availability was unchanged in Q4
Overall availability was expected to increase in Q1.
Demand for secured lending for house purchase increased in Q4, but was expected to decrease in Q1. Demand for secured lending for remortgaging also increased in Q4, but was expected to decrease in Q1
Demand for corporate lending from small businesses increased while demand from medium-sized and large businesses increased slightly in Q4.
Demand for corporate lending in Q1 was expected to be unchanged for small, medium, and large businesses.
Overall spreads on secured lending to households – relative to Bank Rate or the appropriate swap rate – were unchanged in Q4, and were expected to narrow slightly in Q1.
Spreads on corporate lending to small and medium-sized businesses were unchanged in Q4, though widened slightly for large businesses.
Spreads on lending to small and medium-sized businesses were also expected to be unchanged over the next three months, while for large firms they were expected to narrow.
Lenders reported that default rates on secured loans to households slightly increased in Q4, but were expected to be unchanged in Q1.
Losses given default on secured loans increased in Q4, and were expected to increase slightly in Q1.