UK demand for credit cards and mortgages is collapsing as Brits brace themselves for the shock of Brexit

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Getty

  • The Bank of England’s Credit Conditions Survey outlines a slowdown in demand for mortgages and credit cards ahead of the UK leaving the European Union on March 31.
  • UK lenders expect to see demand for mortgages to fall to the lowest levels since the end of 2010.
  • The UK is in the process of arranging its withdrawal from the EU after Theresa May’s Brexit deal was rejected Tuesday, and she survived a no-confidence vote Wednesday.

The UK housing market has slowed to a pace not seen in nearly a decade as Brexit fears freeze demand for mortgages and credit cards.

The Bank of England’s quarterly Credit Conditions Survey indicates that UK lenders are anticipating an economic slowdown ahead of the UK’s departure from the EU on March 31.

The BoE’s gauge of demand for mortgage lending over the next three months fell to -17.5 in the fourth quarter of 2018 from 0.2 in the third quarter, its lowest level since the end of 2010.

Lenders also reported that demand for secured lending for house purchases decreased significantly in Q4, and was expected to decrease further in Q1.

Read more: City of London analysts are warning clients to prepare for a UK election this year as May’s Brexit deal collapses

Earlier on Thursday, the Royal Institution of Chartered Surveyors said expectations for British house sales over the next three months fell in December to their lowest level since records began 20 years ago.

Bank of England lending figures

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Bank of England lending figures
source
Bank of England