British lenders expect consumer borrowing to pick up in the third quarter, according to the Bank of England’s latest credit conditions survey. The report found “a significant increase in default rates on credit card loans” between April and June this year, indicating that consumer budgets could be coming under pressure. The Bank of England is likely to add to the burden on budgets as soon as next month with an interest rate rise that could take the official cost of borrowing to

This latest quarterly survey of banks and building societies found that: