Bank of England reports UK consumer loan defaults at highest level since 2009
Business · 2 July 2026
Written by AI from multiple news reports
The Bank of England reported in late May and early June that UK consumers are failing to repay credit card and personal loan debt at the highest rate since 2009. A survey of lenders found that the number reporting rising defaults exceeded those reporting falls by 34 percentage points, up sharply from 18 percentage points earlier in the year.
The figures cover unsecured borrowing only. Mortgage defaults stayed relatively stable, which is typical, as homeowners usually keep up with secured payments before other debts.
Several factors are putting pressure on household finances, including unemployment rising, interest rates staying elevated, and inflation remaining above the Bank of England's 2 percent target. Credit card balances have grown substantially, more than tripling compared to 2019 levels by April 2026.