Bank of England publishes 2026 Q1 Credit Conditions Survey

The Bank of England published its 2026 Q1 Credit Conditions Survey on 9 April 2026¹. The survey of banks and building societies asked lenders to report changes in the three months to end-February 2026 relative to the period between September and November, and expected changes in the three months to end-May 2026¹. It was conducted between 23 February and 13 March 2026, so any impact from more recent developments is not captured¹.

Lenders reported that the availability of secured credit to households increased in Q1, and expected it to increase again in Q2¹. Availability of unsecured credit to households was unchanged in Q1 and was expected to increase in Q2¹. On demand, secured lending for house purchase was unchanged in Q1 and expected to increase in Q2, while demand for remortgaging increased in Q1 and was expected to increase in Q2¹. Demand for credit card lending was unchanged in Q1 and expected to be unchanged in Q2; demand for other unsecured lending decreased in Q1 and was expected to increase in Q2¹.

On pricing, overall spreads on secured lending to households narrowed in Q1 and were expected to be unchanged in Q2¹. Overall unsecured lending spreads widened in Q1 and were expected to widen in Q2¹. The length of interest-free periods on credit cards for balance transfers increased in Q1 and was expected to increase in Q2, and the length of interest-free periods on new credit cards for purchases increased in Q1 and was expected to increase slightly in Q2¹.

On defaults, lenders reported that default rates on secured loans to households slightly increased in Q1 and were expected to decrease slightly in Q2¹. Default rates for total unsecured lending increased in Q1 and were expected to increase slightly in Q2, with defaults for credit cards and other loans both up in Q1¹. The survey describes changes as an "increase" if the net percentage balance is greater than 10 in absolute terms, as "slight" if between 5 and 10, and as "unchanged" if less than 5¹.

The published table for secured credit availability to households shows a net percentage balance of 15.5 for the past three months in 2026 Q1, against 30.3 in 2025 Q4 and 36.9 in 2025 Q3¹. The expectation for the next three months stands at 22.0 for 2026 Q1¹.

Source: Bank of England, Credit Conditions Survey 2026 Q1¹

Why it matters for households

The survey records lenders' own reports of credit conditions rather than the Bank's view of them, and the results do not necessarily reflect the Bank's views¹. For households, the Q1 findings describe the terms on which loans were available in the three months to end-February 2026: secured availability rose, unsecured availability was flat, secured spreads narrowed and unsecured spreads widened¹. Default rates rose on both secured and unsecured household lending in Q1, with unsecured defaults expected to rise slightly further in Q2¹. The survey does not report figures for individual lenders or products, and no breakdown by nation or region is given¹.

What happens next

The 2026 Q2 Credit Conditions Survey will be published on 2 July 2026¹. It will cover the three months to end-May 2026, relative to the period between December and February¹. The Bank publishes the survey as an input to its work on monetary and financial stability, alongside its regulation and policy work¹.