UK lenders fear spike in mortgage defaults as cost of living hits home

Bank of England survey shows lenders expect steep rise in borrowers failing to make monthly repayments

Britain’s mortgage lenders fear a spike in the number of homeowners handing back their keys as the cost of living crisis forces more people to default on their loans.

The Bank of England said a survey of lenders showed they were braced for a steep rise in customers that cannot pay their monthly mortgage bills during the first quarter of the year.