U.K. default rates and related losses on mortgage lending rose more than expected in the second quarter and are expected to increase further in the next three months, the Bank of England said Thursday. In its quarterly credit conditions survey, the bank also said that demand for secured lending for house purchases had declined in the second quarter by more than lenders had anticipated in the first three months of the year. Taken in concert with dismal services sector data, analysts said that the results of the survey further reduce the possibility of the Bank of England raising interest rates this year. The U.K. bank rate currently stands at 5%, following reductions in April, February and December. Alan Clarke, U.K. economist at BNP Paribas, described the survey as a “particularly bleak assessment.” He said, “Just because the...
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