One in four mortgage holders using credit to maintain borrowing commitments

New polling by YouGov for StepChange Debt Charity shows that nearly one in four (23%) UK mortgage holders has turned to some other form of credit or borrowing in the last three months so that they could keep up with existing borrowing commitments. This comes as the Bank of England is expected to hold interest…

Read more

Credit consumption increases with consumers taking on more debt for longer

20th March 2024 Consumer Lending | #credit

High inflation, interest rates, and a confirmed recession are fuelling a household debt rise, with signs of consumers increasing their reliance on credit products, deferring payments, and spreading out debts for longer to face down the rising cost of living. Equifax data reveals a sustained increase in credit card debt, with levels rising by 9.6%…

Read more

Households dipping into savings and relying more on credit

13th March 2024 Consumer Lending | #credit

A third of adults have less than £500 saved for emergencies, leaving them heavily exposed to income shocks, according to a nationally representative survey of 8,000 UK adults from Lowell. Nearly half (46%) of UK adults saw their financial situation worsen in 2023 and nearly 70% do not expect their financial situation to improve in…

Read more

Over a third of women put off applying for credit after being turned down

8th March 2024 Consumer Lending | #credit

Women who have been rejected for a credit or loan application are significantly more likely than men to assume that “no means never” and struggle on without financial support, according to research by Fair4All Finance, the not-for-profit financial inclusion organisation. Polling of 3,101 adults across the UK showed more than one in three women (36%)…

Read more

900,000 mortgage customers likely to have adverse credit in 2024

6th December 2023 Consumer Lending | #credit

New research by Pepper Money has found that 900,000 potential mortgage customers are likely to have adverse credit in 2024. The 2023 Specialist Lending Study found that 15.16m people have some history of adverse credit, including missed credit payments, defaults, CCJs, unsecured arrears, secured arrears or entering a debt management plan. It also found that…

Read more

One in four borrowers rely on credit to cover essential spending

25th October 2023 Consumer Lending | #credit

Higher loan rejections and limited traditional affordability checks are impacting consumers’ ability to access credit to help make ends meet, according to new research from Tink. The company’s research found that those who hold either a mortgage or loan suggest that a significant number of consumers need to find a way to bridge the gap…

Read more

Young people becoming increasingly reliant on credit

19th July 2023 Consumer Lending | #credit#loans

The cost of living is causing more young people to become dependent on the use of credit to manage their finances according to new research Moneyhub Decisioning. The research has found that in the last six months, a quarter (24%) of people under the age of 35 have applied for an overdraft, of which 21%…

Read more

One in ten consumers say they are using more credit

11th April 2023 Consumer Collections | #credit

New research by KPMG has found that one in ten consumers say they are using credit more so far in 2023 and has indicated how households may respond if they no longer receive energy bill support payments from April. The Government’s Energy Bills Support Scheme provided a monthly discount of around £67 from October through…

Read more

Cost of consumer credit increased again in August

23rd September 2022 Consumer Lending | #credit

The latest Bank of England figures have revealed that quoted household interest rates on consumer credit products continued to rise in August amid an economic environment of rising interest rates, mortgage rates and inflation. The analysis from Freedom Finance has highlighted the impact of the rising cost of borrowing on households and they urged consumers to…

Read more

Consumer finance new business increased by 20% in May

7th July 2022 Consumer Lending | #credit

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 20% in May 2022 compared with the same month in 2021. In the five months to May 2022, new business was 28% higher than in the same period in 2021. The credit card and personal loan sectors…

Read more

Credit card borrowing increasing at fastest rate in 17 years

31st May 2022 Consumer Lending | #credit

Latest Bank of England data has indicated that credit card borrowing is rising at its fastest annual rate in 17 years. The annual growth rate for credit card borrowing hit 11.6% in April – the highest figure since November 2005. The figures also reveal that the rate for all consumer credit increased to 5.7% in…

Read more

Borrowing increases as cost of living pressure rises

New data from StepChange Debt Charity shows that the cost of living pressure continues to rise for financially stretched households, as it was the third most commonly cited reason for debt in March, up from the fourth most common in February and the sixth most common in 2021. While 6% of StepChange clients in 2021…

Read more

Credit card borrowing hits record high

Latest figures from the Bank of England (BoE) has indicated that consumers borrowed a net £1.5 billion on credit cards in February, the highest monthly amount since records began in 1993. The figures showed that lending to consumers rose by the most in nearly five years in February, jumping 90% compared to January. Consumer credit…

Read more