MNI: BOE Q1 Survey Shows Secured Household Credit Flat-Lining

By David Robinson

     LONDON (MNI) - Secured household credit lending flat-lined in the first

quarter of 2018 and demand fell markedly, a Bank of England survey published

Thursday showed.

     The BOE Q1 Credit Conditions Survey adds to the evidence of a housing

market that is at best treading water, with consumers increasingly reluctant to

borrow against properties. Secured credit to households was unchanged in the

first quarter and lenders expected no change in Q2.

     Demand for secured lending fell sharply in Q1 with decreases in both prime

and buy-to-let lending.

     While media reports have talked up unsecured borrowing the Q1 BOE survey

did not bear this out. Overall demand for unsecured lending fell in Q1, with a

substantive decrease in credit card borrowing.

     The percentage balances showed the availability of secured credit was a net

3.8% among lenders in Q1, compared to a net 1.5% in Q4 and down from 2017's high

of 10.05 in Q2.

     Unsecured credit availability fell to -38.7% in Q1 from -12.4% in Q4 and

for the next three months the balance rose to 3.7% from -24.3%.

     Bank officials have repeatedly played down the reported rise in unsecured

credit, with levels well below pre-crisis one, and these latest data suggest

that borrowing is faltering.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

[TOPICS: MABDS$,M$B$$$,M$E$$$]