LONDON, UK: British banks are bracing for a slowdown in borrowing at the start of 2026, with lenders expecting weaker demand for mortgages after activity softened toward the end of last year, a survey by the Bank of England showed on January 15.
According to the central bank's quarterly Credit Conditions Survey, mortgage demand is expected to fall in early 2026 following a decline in the final months of 2025.
Lenders also said they expect demand for unsecured consumer credit to be broadly flat, after it rose in late 2025, the survey showed.
Demand for corporate lending is likewise forecast to remain unchanged over the three months to the end of February, suggesting a subdued appetite for borrowing among households and businesses.
The survey was conducted between November 10 and December 3, capturing lenders' expectations heading into the new year.
