Banks expect interest-free credit card restrictions
Banks and building societies expect to cut the length of interest-free periods on new credit card lending as Christmas approaches, a Bank of England survey has found.
As the country prepares for Brexit, some businesses may also find it tougher to get a loan as lenders expect the overall availability of credit to the corporate sector to decrease in the next few months.
The Bank's Credit Conditions Survey asks lenders every quarter about the past three months and their expectations for the coming three months.
The survey for the third quarter of this year, which took place between September 2 and 20, found that the length of interest-free periods on new credit card lending had decreased in the previous three months for balance transfers and new purchases.
The survey found further decreases in interest-free periods were expected in the coming three months, just as households prepare for Christmas.