Banks tighten up on non-mort­gage lend­ing

The Scotsman - - Business - By VICKY SHAW

Banks and build­ing so­ci­eties are tight­en­ing up on non­mort­gage lend­ing to house­holds and snip­ping the length of in­ter­est-free pe­ri­ods, ac­cord­ing to a Bank of Eng­land sur­vey.

The length of in­ter­est-free pe­ri­ods for bal­ance trans­fers on new credit card lend­ing was re­ported by lenders to have de­creased slightly over the past three months – the first fall since this ques­tion was first asked at the start of 2015. But the length of in­ter­est­free pe­ri­ods for pur­chases on new credit card lend­ing was re­ported to have in­creased slightly in the third quar­ter.

The pro­por­tion of non­mort­gage credit ap­pli­ca­tions be­ing ap­proved has fallen sig­nif­i­cantly in re­cent months, the credit con­di­tions re­port found.

Lenders said the avail­abil­ity of non-mort­gage credit to house­holds de­creased in the third quar­ter of this year and was ex­pected to see a “sig­nif­i­cant” de­crease in the next three months.

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